Translation: Blockchain in Vernacular

When Base went live in August 2023, many skeptics called it “just another L2 fork.” Yet today: Base already has $379 million in total value locked (TVL), over $18 billion in daily trading volume, and over $3.5 billion in stablecoins in circulation. Let’s explore the reasons behind this growth.

 

1. Ecology

Base's ecosystem is strong in all areas, 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

Trading volume is also astonishing:

• Daily trading volume: $1.934 billion

• Weekly trading volume: $11.9 billion

• Monthly trading volume: $43 billion

Ranking behind Solana and Ethereum in trading volume. With the growth of Clanker, it may even challenge the positions of the top two.

3. Liquidity

Let's talk about liquidity. The circulating supply of stablecoins is $3.54 billion. The most indicative data is cross-chain liquidity, with net inflows of $756 million last month and a total inflow of $1.2 billion over three months, which is twice the inflow of Solana.

Funds flow 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 success lies in their vAMM solution, which successfully addresses the liquidity provider (LP) poisoning problem.

Traditional AMMs can suffer up to 40% losses from arbitrage, while Aerodrome has completely changed that situation.

@AlienBaseDEX is changing DeFi trading through Epsilon.

Imagine if all decentralized exchanges (DEXs), all trading paths, and all analytical tools were integrated into one seamless interface.

That's why ALB surged 80 times this year.

Next is @MorphoLabs, which combines traditional finance with decentralized finance (DeFi).

Supported by a16z and Coinbase Ventures, they have improved lending functionality through order book efficiency. What’s the result? A combination of institutional-level lending with the flexibility of DeFi, and Morpho has recently surpassed Compound's total deposits.

When the WBTC crisis 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 6-fold growth.

@OriginProtocol, founded by one of the co-founders of PayPal, has developed an impressive product. Their SuperOETHb offers an annualized yield of 21% by combining smart ETH staking with liquidity provider strategies.

Of course, there are other outstanding projects, such as:

@AnzenFinance is developing operational standards for RWA. Their $USDz and $sUSDz bring real treasury yields into DeFi, offering an annualized yield of 15% and institutional-level security.

@ExtraFi_io has also raised staking yields to new heights. Its total value locked (TVL) of $1.41 billion continues to grow, earning market recognition.

4. Summary

Base showcases a successful example of DeFi, a perfect combination of institutional support and community innovation, representing a balance of real yields and sustainable growth.