The blockchain Base has reached a significant milestone in 2024, surpassing for the first time a Total Value Locked (TVL) of 2 billion dollars.
This represents an impressive growth of 370% compared to the data at the beginning of the year. A decisive contribution to this growth was given by Aerodrome, a decentralized exchange that attracted over 1 billion dollars in deposits, consolidating itself as the largest player on the Base network.
Base: TVL is growing, an exponentially growing blockchain
Base, a second-layer blockchain developed by the Coinbase team, has seen rapid and steady expansion since it was launched. Designed to optimize efficiency and reduce transaction costs on the Ethereum network, Base has become an attractive platform for developers and DeFi (decentralized finance) projects.
Its second-layer technology, which leverages the rollup mechanism, allows for processing a high number of transactions more efficiently compared to the main Ethereum network. This has made Base an ideal choice for those seeking fast and low-cost solutions in the world of decentralized finance. Consequently, numerous DeFi projects and protocols have started migrating to this blockchain, leading to an increase in TVL.
The role of Aerodrome in the growth of Base’s TVL
One of the main actors behind the recent explosive growth of Base’s TVL is Aerodrome, a decentralized exchange (DEX) that has quickly gained popularity. Aerodrome has been the project with the greatest impact on the Base network, contributing over 1 billion dollars to the overall TVL.
Aerodrome stands out for its ability to attract liquidity thanks to incentive mechanisms and yield farming programs. Users deposit cryptocurrencies in the exchange to earn rewards, thus helping to increase the liquidity and the value locked in the protocol.
This approach has made Aerodrome one of the most important DeFi platforms on Base, attracting not only retail investors but also large institutional capital seeking high returns.
The growth of Aerodrome has created a ripple effect, contributing not only to the expansion of the DEX itself, but also to the reputation and adoption of the Base network. With a TVL exceeding 1 billion dollars, Aerodrome represents more than 50% of the total value locked on the Base blockchain, consolidating its key role in the ecosystem.
What is TVL and why is it important?
The Total Value Locked (TVL) is one of the most important metrics to evaluate the health and success of a blockchain or a DeFi protocol. It represents the total value of assets locked in a specific protocol or network. A high TVL indicates that there is a lot of liquidity and that investors have confidence in the protocol.
For a blockchain like Base, a TVL above 2 billion dollars demonstrates that the network is gaining traction and becoming increasingly competitive compared to other platforms like Ethereum, Binance Smart Chain, and Polygon.
A 370% increase in TVL in less than a year highlights not only the rise in demand, but also the network’s potential to attract significant projects and capital in the future.
The rise of Base in the blockchain landscape is due to several factors, including:
- Scalability and low transaction costs: being a second layer solution on Ethereum, Base allows users to execute transactions at significantly lower costs compared to the main network, without compromising security.
- Growing ecosystem: the increasing adoption by developers and DeFi projects is creating a dynamic and expanding ecosystem. The presence of DEX like Aerodrome and other DeFi applications offers opportunities for investors and users to actively participate in the market.
- Support from Coinbase: the fact that Base was developed by Coinbase, one of the largest and most reliable cryptocurrency exchange platforms in the world, gives the blockchain considerable credibility. This factor has attracted not only retail users but also institutional investors, contributing to a rapidly growing TVL.
The prospects of Base
With the surpassing of the 2 billion dollar TVL threshold, Base has positioned itself as one of the most promising emerging blockchains of 2024. However, there are still many challenges and opportunities on the horizon.
The DeFi ecosystem is highly competitive, and Base will need to continue innovating to maintain its position as a leader. The growth of TVL is a positive indicator, but it will be essential for the blockchain to attract additional projects and capital in the coming months.
In this context, Aerodrome will continue to play a fundamental role, but the expansion of other projects on Base could further consolidate the network.
Furthermore, the competition with other second layer solutions and alternative blockchains will be intense. Ethereum, Arbitrum, Optimism, and other players in the sector will continue to innovate, and Base will need to differentiate itself with new services and technologies to remain competitive.
Base has surpassed a fundamental milestone with a TVL of over 2 billion dollars, growing by 370% since the beginning of the year thanks to the success of Aerodrome. This demonstrates the potential of the blockchain to become one of the main DeFi platforms in the crypto landscape. However, the future will depend on the ability to attract further projects and capital, consolidating its position in the sector. Base seems to be on the right path to becoming a leading player in the world of blockchain and decentralized finance.