Author: @YashasEdu
Translation: Plain Language Blockchain
When Base launched in August 2023, many skeptics called it 'just another L2 fork.' However, to date: 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
The Base 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 after 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 circulation of stablecoins is $3.54 billion. The most indicative data is the cross-chain liquidity, with a net inflow of $756 million last month and a total inflow of $1.2 billion over three months, which is double that of Solana’s inflow.
Funds flow to where value is created, and Base is creating value.
@AerodromeFi (AERO) is a major reason for Base's growth, reaching a total value locked (TVL) of $14.7 billion. Their secret to success lies in their vAMM solution, which effectively solves the liquidity provider (LP) poisoning problem.
Traditional AMMs may incur arbitrage losses of up to 40%, while Aerodrome has completely changed this situation.
@AlienBaseDEX is changing DeFi trading through Epsilon.
Imagine all decentralized trading platforms (DEX), all trading paths, and all analytical tools integrated into a seamless interface.
This is the reason why ALB surged 80 times this year.
Next is @MorphoLabs, the combination of traditional finance and decentralized finance (DeFi).
With support from a16z and Coinbase Ventures, they have improved borrowing efficiency through order book enhancements. What’s the result? Combining institutional-grade borrowing with the flexibility of DeFi, Morpho has recently surpassed the total deposits of Compound.
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 6x growth.
@OriginProtocol, founded by one of PayPal's co-founders, has developed an impressive product. Their SuperOETHb offers a 21% annualized yield by combining smart ETH staking with liquidity provider strategies.
Of course, there are also some 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 yield and institutional-level security.
@ExtraFi_io has also taken staking yields to new heights. Its total value locked (TVL) of $1.41 billion continues to grow, with market recognition.
4. Summary
Base shows us a successful model of DeFi, a perfect combination of institutional support and community innovation, truly balancing real yields with sustainable growth.
