Article reprint source: Baihua Blockchain
Author: @YashasEdu
Translation: Baihua Blockchain
When Base launched in August 2023, many skeptics called it 'just another L2 fork.' However, as of today: Base has a total value locked (TVL) of $379 million, a daily trading volume of over $18 billion, and a stablecoin circulation of over $3.5 billion. Let's explore the reasons behind this growth.
1. Ecosystem
Base's ecosystem is performing strongly across various sectors, including:
Social finance (SocialFi), such as @farcaster_xyz, @zora, and @friendtech;
Meme L3, such as @DegencChain;
Artificial intelligence (AI), such as @virtuals_io;
Decentralized finance (DeFi), such as @AerodromeFi and @MoonwellDeFi.
2. Trading volume
The trading volume is also shocking:
• Daily trading volume: $1.934 billion
• Weekly trading volume: $11.9 billion
• Monthly trading volume: $43 billion
Ranking after Solana and Ethereum in trading volume. With the growth of Clanker, it may even challenge these top two positions.
3. Liquidity
Let's talk about liquidity. The stablecoin circulation is $3.54 billion. The most indicative data is cross-chain flow, with a net inflow of $756 million just last month and a total inflow of $1.2 billion over three months, which is double the inflow of Solana.
Capital flows to where value is created, and Base is creating value.
@AerodromeFi (AERO) is a major driver of Base's growth, with a total value locked (TVL) reaching $14.7 billion. Their secret to success lies in their vAMM solution, which effectively addresses the liquidity provider (LP) poisoning problem.
Traditional AMMs may incur arbitrage losses of up to 40%, while Aerodrome has completely changed this situation.
@AlienBaseDEX is changing DeFi trading through Epsilon.
Imagine all decentralized exchanges (DEXs), all trading paths, and all analytical tools integrated into one seamless interface.
This is why ALB skyrocketed 80 times this year.
Next is @MorphoLabs, the combination of traditional finance and decentralized finance (DeFi).
Supported by a16z and Coinbase Ventures, they have enhanced borrowing capabilities through order book efficiency. What is the result? The combination of institutional-level borrowing with the flexibility of DeFi, Morpho has recently surpassed Compound's total deposits.
When the WBTC turmoil occurred, @MoonwellDeFi was already prepared and quickly became the leading BTC staking yield on Base. Now, they are at the forefront of cbBTC integration and have achieved an impressive 6x growth.
@OriginProtocol, founded by one of the co-founders of PayPal, has developed an impressive product. Their SuperOETHb offers an annual yield of 21% by combining smart ETH staking with liquidity provider strategies.
Of course, there are other outstanding projects, such as:
@AnzenFinance is developing operating standards for RWA. Their $USDz and $sUSDz bring real treasury yields into DeFi, offering an annual yield of 15% with institutional-grade security.
@ExtraFi_io has also elevated staking yields to new heights. Its total value locked (TVL) of $1.41 billion continues to grow, and the market recognizes this.
4. Summary
Base shows us a successful model of DeFi, a perfect blend of institutional support and community innovation, achieving real yields and sustainable growth in tandem.
