Author: @YashasEdu
Translation: Plain language 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, over $18 billion in daily trading volume, and over $3.5 billion in stablecoin circulation. Let's explore the reasons behind this growth.
1. Ecosystem
Base's ecosystem is performing strongly across various fields, 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 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 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 twice the inflow to Solana.
Capital flows to where value is created, and Base is creating value.
@AerodromeFi (AERO) is the main reason for Base's growth, with a total value locked (TVL) of $14.7 billion. Their secret to success lies in their vAMM solution, which effectively addresses the liquidity provider (LP) poisoning issue.
Traditional AMMs can suffer up to 40% in arbitrage losses, while Aerodrome has completely changed this situation.
@AlienBaseDEX is transforming DeFi trading through Epsilon.
Imagine all decentralized exchanges (DEXs), all trading paths, and all analytical tools integrated into a seamless interface.
This is why ALB has skyrocketed 80 times this year.
Next is @MorphoLabs, a 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? Combining institutional-level borrowing with the flexibility of DeFi, Morpho has recently surpassed Compound's total deposits.
When the WBTC incident 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 annual yield of 21% by combining smart ETH staking with liquidity provider strategies.
Of course, there are some other outstanding projects, such as:
@AnzenFinance is setting operational norms for RWA. Their $USDz and $sUSDz bring real treasury yields into DeFi, offering an annual yield of 15% and institutional-level security.
@ExtraFi_io is also taking 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 showcases a successful model of DeFi, a perfect blend of institutional support and community innovation, representing a balance between real returns and sustainable growth.
