Circle’s USDC Burn Impacts Base Network’s Total Value Locked

Coinbase-incubated layer-2 blockchain, Base, witnessed a dramatic rise, even briefly outshining Ethereum mainnet. Based on Optimistic Rollup and developed on the Ethereum network, Base utilizes OP Stack tech that has added to its appeal owing to the growing demand and popularity of alternatives in the ecosystem.

However, its TVL has taken a hit in the past week.

• According to data from L2Beat, the total value locked in Base Network fell by more than 18.28% to $437 million in the past seven days.
• The significant decrease in Base’s Total Value Locked (TVL) can mainly be attributed to the extensive burning of Base USDC on September 29.
• Data from Dune Analytics indicate that the figure plummeted from a high of 160 million down to just 29.84 million in a single day.
• This comes after fintech firm and stablecoin issuer Circle announced the launch of USDC earlier last month.
• As a result, Matter Labs’ zero-knowledge (zk) rollup tech-powered scaling solution – zkSync Era – with a TVL of $476 million surpassed Base, which now stood at the fourth position.
• Among the top five rollups, Base is the only project in red, while Arbitrum One and OP Mainnet were up by 10.12% and 8.29%, with TVLs of $6.17 billion and $2.80 billion, respectively.
• Moreover, zkSync Era’ TVL was also up by more than 15% during the same period.
• Despite the drawdown in TVL, Base remains a strong contender in the space.
• Since its inception, the network has bridged over $459 million.