Base's TVL Soars to Nearly $1 Billion
Aerodrome drives Base's total value locked, which has nearly doubled since march
March 26, 2024 09:37 AM
Reading time: 1 minute, 41 seconds
TL;DR Base, a Layer 2 Ethereum network incubated at Coinbase, has seen its total value locked (TVL) nearly double since March, reaching $970 million. Aerodrome, a decentralized exchange, is a significant contributor, accounting for almost half of all Base's TVL with $424 million. The surge in Aerodrome's TVL is attributed to increased user activity and the spike in the value of its native Aero token.
The Rise of Base
Base, a burgeoning Layer 2 Ethereum network developed under the auspices of cryptocurrency giant Coinbase, has witnessed a remarkable surge in its total value locked (TVL), essentially doubling from $470 million at the start of March to an impressive $970 million. This growth underscores the network's expanding influence and the increasing trust of users in its capabilities.
Aerodrome's Pivotal Role Central to this dramatic increase is Aerodrome, a decentralized exchange that has contributed a whopping $424 million to Base's TVL. Originating as a forked version from Velodrome Finance on the OP Mainnet, Aerodrome was launched on Base in September 2023 with a mission to enhance liquidity and facilitate a majority of on-chain swaps on the network.
This strategy mirrors the successful approach taken with Velodrome on the OP Mainnet, emphasizing decentralized finance incentives and vote-escrowed governance to engage users.
"Base's TVL stands at $970 million, nearly doubling since March."
Surge in User Activity and Aero Token's Value Aerodrome's TVL rocketed from $125 million in early February to over $420 million, propelled by a significant uptick in user activity and a major spike in the value of its native Aero token. This growth trajectory highlights Aerodrome's burgeoning appeal and its critical role in Base's ecosystem.
Base's Market Position Since its public launch in early August 2023, Base has rapidly ascended the ranks to become the fourth most valuable Layer 2 blockchain in terms of TVL.
This achievement places it behind leading networks such as Arbitrum, Optimism, and Blast but ahead of many others in the competitive Layer 2 space. The network's ascent is further marked by a surge in daily users and transactions, hitting record highs following the Dencun upgrade.
Future Prospects As Base continues to grow, both in terms of TVL and user engagement, its prospects look increasingly promising. The network's success is emblematic of the broader trend towards Layer 2 solutions as vital components of the blockchain ecosystem, offering scalability, efficiency, and reduced costs.
With contributors like Aerodrome driving significant portions of the network's value, Base is well-positioned for continued expansion and innovation.
