In the fast-changing world of Ethereum Layer-2 networks, few moments feel as symbolic as the day Linea overtook Base in DeFi total value locked. It wasn't just a numbers win, it was a statement. Here, let's unpack what happened, why it matters, and what could come next.
The Rise of Linea
Linea is a zkEVM L2 developed under ConsenSys and is growing explosively. On September 3, 2025, Linea's DeFi TVL crossed US$1 billion, hitting approximately US$1.02 B, data by DefiLlama reported by CoinRank.
This growth didn’t occur in a vacuum. A major driving force was the Linea Ignition program, which distributed 1 billion LINEA tokens as liquidity incentives. In the 24 hours since the launch of the program, TVL leaped by some 18%, signaling not just hype but real capital flowing in.
Some of the more notable DeFi protocols contributing to this TVL include Aave, Etherex, and Renzo. Notably, Aave alone accounts for nearly 60% of Linea's TVL, indicating just how much of the liquidity is coming from serious players in DeFi.
Just days later, Linea's TVL climbed even further: by September 5, 2025, it was reported to be US$1.214 billion. And by later in September, some sources pegged the all-time high around US$1.3 B.
Where was the base at that time?
Base, the Layer-2 chain incubated by Coinbase, has seen remarkably strong adoption and has been a significant contender for L2 TVL for quite a long period of time. But despite its growth, the surge on Linea created a moment in DeFi where capital started to look at Linea not just as an up-and-coming challenger but a very real alternative.
While I could not find any credible sources confirming that Linea permanently passed Base in all the metrics of TVL, especially non-DeFi TVL, the jump above US$1 B in DeFi TVL - largely incentivized - is enough to fuel a "flip" narrative. For many in the community, that day symbolized a turning point in L2 capital gravity.
Why the Flip Was Significant
1. Incentive-Driven yet Strategic
The Ignition token rewards weren't a dump of cash; they came with structure. In pegging the rewards to protocols such as Aave and Etherex, Linea ensured that TVL arrived by way of deep, meaningful usage of DeFi rather than some purely speculative farm.
2. Technical Appeal: zkEVM
Linea's zkEVM architecture gives it strong Ethereum compatibility-which is good for developers-plus scalability. That made it particularly attractive for DeFi protocols wanting both performance and security.
3. Network Effect & Liquidity Gravity
More DeFi capital piles into a chain, more users and protocols are likely to follow. When Linea crossed $1 B, it sent a signal to liquidity providers: “Yes, this is a place to build and deposit.”
4. Narrative Shift
In crypto, narratives count. This wasn't just about TVL; it was a symbolic moment, signaling the fact that newer L2s with more modern tech (and strong incentives) can challenge legacy players.
5. Risk Appetite & Speculation
The Risks and Challenges
While the “flip” is exciting, it’s not without risk:
TVL Reliability
TVL can be misleading as a metric. There could be double counting, or the capital isn't "sticky." Indeed, academic research has even questioned whether TVL is verifiable in the first place.
Protocol Concentration Risk
Since protocols like Aave are a huge chunk of the TVL on Linea, systemic risk does exist. If anything happens with Aave on Linea, it could affect Linea's TVL disproportionately.
Competition from Other L2s
It's not the only competitor. Arbitrum, Optimism, and zkSync — these are all competing for DeFi capital. Linea needs to keep up the innovation pace.
User Behaviour Risk
Are users depositing for yield or for real long-term usage? If the latter, TVL could be more sustainable; if the former, TVL may be more volatile.
What This Means for the Future
Linea might just continue to climb: If they play their cards right, sustain incentives and build a strong developer ecosystem, Linea may keep on attracting major DeFi protocols and capital.
More L2s will leverage incentives: Encouraged by the success of the Ignition program, other L2 networks could start their own aggressive liquidity programs.
TVL as a strategic metric: in the coming future, protocols and users will use TVL not only as an indicator of liquidity but also as a signal of chain health, momentum, and future potential.
Risk management will be key: For Linea, it will be about maintaining a balanced ecosystem, with no over-reliance on one or two protocols. For users, it will require greater understanding of the terms of liquidity programs-vesting, lockups, exit risks-than ever.
My Perspective
The day Linea "flipped" Base in DeFi TVL isn't just a footnote; it's a meaningful moment in L2 evolution, underlining the fact that
Capital is not certain to be retained with more matured L2s.
Incentives + strong tech can quickly change power dynamics.
The DeFi activity increasingly values not just scale but sustainable scale: liquidity that comes with protocol usage.
It means, more so, that I don't believe it's the end of Base. Instead, this is a message: the L2 race is far from decided. Momentum may shift quickly, and long-term surviving chains are those that manage to combine incentives, real utility, strong infrastructure, and smart governance.
