🔴｜Reasons and Data Analysis for BASE's Rapid Growth
————————————————————
When Base launched in August 2023, it was questioned as 'just another L2 fork.' To this day, Base boasts a TVL of 3.79 Billion USD, with over 1.8 Billion USD in daily trading volume and over 3.5 Billion USD in stablecoin circulation.
📍This article will discuss the reasons behind Base's growth in 5 parts:
1) Ecosystem
2) Trading Volume
3) Liquidity
4) How Aerodrome Rewrites DeFi Rules
5) The Encounter of TradFi and DeFi
1) Base's Ecosystem 🔻
First of all, Base's ecosystem is a very powerful system that spans across various vertical fields, covering many areas such as 👇
——SocialFi: Farcaster, Zora, Friend.tech
——Meme L3: Degen Chain
——AI: Virtuals Protocol
——DeFi: Aerodrome, Moonwell
2) Base's Trading Volume 🔻
Secondly, Base's trading volume is also quite impressive:
——Daily Trading Volume: 1.93 Billion USD
——Weekly Trading Volume: 11.9 Billion USD
——Monthly Trading Volume: 43 Billion USD
By comparison, you'll find that Base's trading volume is second only to ETH and Solana. As Clanker develops, the positions of ETH and Solana are also at risk.
3) Base's Liquidity 🔻
Just last month, the net inflow of stablecoins was 756 Million USD, while the total inflow over the past 3 months was 1.2 Billion USD, which is 2 times more than Solana's inflow. As the saying goes, funds will ultimately flow to places that create value, and Base is creating value.
4) How Aerodrome Rewrites DeFi Rules 🔻
Aerodrome is a crucial reason for Base's growth, with a TVL of 14.7 Billion USD.
Their secret to success lies in their vAMM (virtual automated market maker) solution, which effectively addresses the liquidity provider (LP) poisoning issue. Traditional AMMs can incur losses of up to 40% due to poisoning issues, but Aerodrome has completely rewritten the rules.
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 transformed DeFi trading. Imagine, every DEX, every trading route, and every analytical tool is integrated into one seamless interface.
5) The Encounter of TradFi and DeFi 🔻
Morpho Labs, supported by a16z and Coinbase Ventures, is committed to improving lending efficiency, combining institutional-level lending with the flexibility of DeFi.
When WBTC faced a crisis, Moonwell DeFi was prepared 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 demonstrates the path to success in DeFi, combining institutional support with community innovation to achieve genuine returns and sustainable growth.
🔹Original link: x.com/yashasedu/stat…
