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When Base was launched in August 2023, it was questioned as "just another L2 fork". Today, Base has $3.79 billion TVL, more than $1.8 billion in daily trading volume, and more than $3.5 billion in stablecoin circulation.
📍This article will explain the reasons behind base growth in 5 parts:
1) Ecosystem
2) Trading volume
3) Liquidity
4) How Aerodrome rewrites the rules of DeFi
5) TradFi meets DeFi
1) Base’s ecosystem🔻
First of all, Base's ecosystem is a very powerful system across vertical fields, covering many fields such as 👇🏻
——SocialFi：Farcaster、zora、friend.tech
——Meme L3：Degen Chain
——AI：Virtual Protocol
——DeFi：Aerodrome、Moonwell
2) Base trading volume 🔻
Secondly, the transaction volume of Base is also amazing:
——Daily trading volume: $1.93 billion
Weekly volume: $11.9 billion
Monthly trading volume: $43 billion
By comparison, you will find that the transaction volume of base is second only to ETH and Solana. With the development of Clanker, the status of ETH and Sol is also likely to be threatened.
3) Liquidity of base 🔻
Last month alone, the net inflow of stablecoins was $756 million, and the total inflow in the past three months was $1.2 billion, which is twice as much as Solana's inflow. As the saying goes, funds will eventually flow to where value is created, and Base is creating value.
4) How Aerodrome is rewriting the rules of DeFi🔻
Aerodrome is a big reason for Base’s growth, with a TVL of $14.7 billion.
The secret to their success is their vAMM (virtual automated market maker) solution, which effectively solves the problem of poisoning of liquidity providers (LPs). Traditional AMMs can cause losses of up to 40% due to poisoning, but Aerodrome has completely rewritten the rules of the game.
It is undeniable that Aerodrome Finance has become a dominant force in the DeFi space, especially on the Base chain, where Alien Base's Epsilon has changed DeFi trading. Imagine every DEX, every trading route, and every analysis tool in one seamless interface.
5) TradFi meets DeFi🔻
Backed by a16z and Coinbase Ventures, Morpho Labs is dedicated to improving lending efficiency, which enables institutional-grade lending combined with the flexibility of DeFi.
When the WBTC crisis occurred, MoonwellDeFi was ready and quickly became the leading Bitcoin yield farm on the Base chain. Now, they are at the forefront of cbBTC integration and have achieved an astonishing 6x growth in the process.
Overall, Base shows us the path to success for DeFi, which combines institutional support with community innovation to achieve real returns and sustainable growth.
🔹Original link: https://twitter.com/YashasEdu/status/1862489198655406188?t=016iuvTgHiaz4i-T81P0GA&s=19
