The driving forces behind the rapid growth of data analysis Base

Since its launch in August 2023, Base has rapidly grown to become a leader in the DeFi space through a strong ecosystem, trading volume, and liquidity, combined with innovative DeFi solutions.

Author: @YashasEdu

Translation: Plain Language Blockchain

When Base launched in August 2023, many skeptics referred to it as "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 more than $3.5 billion in circulating stablecoins. Let’s explore the reasons behind this growth.

1. Ecosystem

Base's ecosystem is performing strongly across various sectors, 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 impressive:

• 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 circulating stablecoin volume 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 the inflow of Solana.

Funds flow to where value is created, and Base is creating value.

@AerodromeFi (AERO) is a major reason for Base's growth, with a total value locked (TVL) reaching $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 has transformed DeFi trading through Epsilon.

Imagine all decentralized exchange platforms (DEXs), all trading paths, and all analytical tools integrated into a seamless interface.

This is why ALB has surged 80 times this year.

Next is @MorphoLabs, which combines traditional finance with decentralized finance (DeFi).

Backed by a16z and Coinbase Ventures, they have enhanced borrowing efficiency through order book improvements. What’s the result? Combining institutional-level borrowing with the flexibility of DeFi, Morpho has recently surpassed Compound in 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 and have achieved an impressive 6-fold 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 other outstanding projects, such as:

@AnzenFinance is establishing operational standards for RWAs. Their $USDz and $sUSDz bring real treasury yields into DeFi, offering a 15% annualized yield with institutional-level security.

@ExtraFi_io has also elevated staking yields to new heights. Its total value locked (TVL) of $1.41 billion continues to grow, and the market has recognized this.

4. Conclusion

Base demonstrates a successful model of DeFi, a perfect combination of institutional support and community innovation, achieving both real yields and sustainable growth.

Article link: https://www.hellobtc.com/kp/du/11/5562.html

Source: https://x.com/YashasEdu/status/1862489198655406188