Since its launch in August 2023, Base has rapidly grown into a leader in the DeFi field through its strong ecosystem, trading volume and liquidity, combined with innovative DeFi solutions.
Author: @YashasEdu
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
The volume of transactions is also astounding:
• Daily trading volume: $1.934 billion
• Weekly trading volume: $11.9 billion
• Monthly trading volume: $43 billion
It ranks behind , Solana, and Ethereum in terms of transaction volume. As Clanker grows, it may even challenge these top two positions.
3. Liquidity
Let’s talk about liquidity. Stablecoin circulation is $3.54 billion. The most indicative data is cross-chain flow, with net inflows of $756 million last month alone, and a total inflow of $1.2 billion in three months, twice the inflow of Solana.
Money flows to where value is created, and Base is creating value.
@AerodromeFi (AERO) is the main reason for Base’s growth, reaching $14.7 billion in total value locked (TVL). The secret to their success is their vAMM solution, which successfully solves the problem of liquidity provider (LP) poisoning.
Traditional AMMs can lose up to 40% to arbitrage, but Aerodrome completely changes the situation.
@AlienBaseDEX is changing DeFi trading with Epsilon.
Imagine all decentralized exchanges (DEXs), all trading paths, and all analytical tools integrated into one seamless interface.
This is why ALB has skyrocketed 80 times this year.
Next up is @MorphoLabs, the marriage of traditional finance and decentralized finance (DeFi).
Backed by a16z and Coinbase Ventures, they’ve enhanced lending capabilities with order book efficiency. The result? Combining institutional-grade lending with the flexibility of DeFi, Morpho recently surpassed Compound in total deposits.
When the WBTC storm happened, @MoonwellDeFi was ready and quickly became the leading BTC staking yield for 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 a 21% APY by combining smart ETH staking with a liquidity provider strategy.
Of course there are some other outstanding projects, such as:
@AnzenFinance is developing the RWA operating specifications. Their $USDz and $sUSDz bring real treasury returns to DeFi, providing a 15% annualized yield with institutional-grade security.
@ExtraFi_io also took staking returns to new heights. Its $1.41 billion Total Value Locked (TVL) continues to grow, and the market recognizes this.
4. Summary
Base shows us a successful example of DeFi, a perfect combination of institutional support and community innovation, where real returns and sustainable growth go hand in hand.
Link to this article: https://www.hellobtc.com/kp/du/11/5562.html
Source: https://x.com/YashasEdu/status/1862489198655406188