Base Becomes the Biggest L2 as Uniswap Labs Prepares to Launch Its Own Ethereum Layer 2

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This week in Web3: Base becomes biggest L2, Trump’s crypto venture to sell tokens

A version of this article appeared in our The Decentralised newsletter on October 15. Sign up here.

GM, Tim here.

Base just became the biggest layer 2, with over $2.4 billion in DeFi deposits.

Here’s a look at how L2s performed this week, and why Base’s growth is surprising Arbitrum. Plus: Trump’s crypto venture is set to begin selling its WLFI token today.

L2s: Base takes the top spot from Arbitrum

Coinbase’s Base has overtaken Arbitrum to become the largest Ethereum layer 2 by total value locked.

As of Monday, there were over 240,000 ETH ($374 million) deposited in DeFi protocols on Base, according to data from Llama. This represents a 20% increase compared to last week.

At the same time, Arbitrum’s TVL has declined by 7% to reach $1.9 billion. Despite launching a community DAO and spending millions on events, Arbitrum’s growth has slowed in recent months.

Ethereum layer 2s: Base takes the top spot from Arbitum. (DefiLlama)

Base, on the other hand, has seen a surge in adoption since launching in February. Its low fees, fast transactions, and connection to Coinbase have made it a popular destination for DeFi users.

Here’s a look at the top 5 Ethereum layer 2s by total value locked as of Monday:

Base: $2.4 billion (+20%)

Arbitrum: $1.9 billion (-7%)

Optimism: $1.3 billion (+6%)

zkSync: $744 million (+11%)

Scroll: $454 million (+10%)

The move highlights the increasing importance of L2s in the Ethereum ecosystem. As the main network struggles with congestion and high fees, L2s offer a scalable and cost-effective solution for DeFi applications.

Trump’s crypto venture to sell tokens

Donald Trump’s crypto venture, World Liberty Financial, will begin selling its WLFI token today.

The Republican presidential candidate promoted the upcoming sale in a post on Truth Social on Friday, sharing a video from the official World Liberty Financial X account.

World Liberty Financial plans to sell 20% of its token at a $1.5 billion valuation, netting it $300 million, according to documents seen by The Block. Code tests previously indicated the project planned to raise $540 million at a $1.8 billion valuation.

The move marks the first time a US presidential candidate has launched a crypto token. Many in DeFi — including some of Trump’s most vocal supporters — worry that World Liberty Financial could damage the former president’s campaign.

“Is there something that we, as Crypto Twitter, can collectively do to stop the launch of World Liberty Coin?” Nic Carter, founding partner of Castle Island Ventures, said on X.

“It genuinely damages Trump’s electoral prospects, especially if it gets hacked.”

Only those who have passed know-your-customer checks will be able to purchase tokens. In the US, only accredited investors can buy WLFI.

Uniswap to launch an L2

Uniswap Labs, the firm behind the top decentralised exchange, will release an Ethereum layer 2 before the end of the year, according to people familiar with the matter.

But what’s really piqued the interest of DeFi natives is how Uniswap DAO’s UNI token factors in.

The new blockchain, called Unichain, will share its revenue with UNI holders who opt to lock up, or “stake,” their tokens.

Uniswap has collected more than $3.8 billion in fees since its launch almost six years ago. While most of these fees go to liquidity providers, a small percentage could be redirected to UNI holders in the future.

There are additional ways Unichain could deliver a return to UNI holders:

The launch of Unichain and the potential for UNI holders to earn a yield has pushed the token’s price up by 10% in the past 24 hours. At the time of writing, UNI was trading at $8.

This week in DeFi governance

VOTE: Arbitrum DAO mulls $1.5 million events budget for 2025

ARFC: Aave DAO proposes renewing Chaos Labs as a DAO service provider

PROPOSAL: Jito DAO proposes $4 million grants programme for its upcoming restaking product

Post of the week

As Uniswap announced Unichain, Seed Club’s Cheryl Douglass poked fun at the large number of Ethereum layer 2s launched in recent months.

was so worried i was going to wake up today and there wouldnt be a new L2 thank god

was so