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 the trading volumes of Solana and Ethereum. With the growth of Clanker, it might 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 liquidity, with net inflows of $756 million just last month, and a total inflow of $1.2 billion over three months, which is double the inflow of Solana.
The flow of funds creates value, and Base is creating value.
@AerodromeFi (AERO) is a major 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 the game.
@AlienBaseDEX is transforming DeFi trading through Epsilon.
Imagine all decentralized trading platforms (DEX), all trading pathways, and all analytical tools integrated into a seamless interface.
This is the reason why ALB skyrocketed 80 times this year.
Next is @MorphoLabs, the fusion of traditional finance and decentralized finance (DeFi).
Supported by a16z and Coinbase Ventures, they enhanced borrowing capabilities through order book efficiency. What is the result? Combining institutional-grade borrowing with the flexibility of DeFi, Morpho has recently surpassed Compound's total deposits.
When the WBTC incident occurred, @MoonwellDeFi was prepared and quickly became the leading BTC staking yield on Base. Now, they are at the forefront of cbBTC integration, achieving remarkable 6-fold growth.
@OriginProtocol, founded by one of PayPal's co-founders, has developed an impressive product. Their SuperOETHb offers a 21% annualized return 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 a 15% annualized return, with institutional-grade security.
@ExtraFi_io has also elevated staking returns to new heights. Its total value locked (TVL) of $1.41 billion continues to grow, earning market recognition.
4. Summary
Base shows us a successful model of DeFi, a perfect combination of institutional support and community innovation, truly balancing real returns and sustainable growth.
