Base, the Coinbase-backed Ethereum Layer 2 solution, has overtaken Arbitrum in Total Value Locked (TVL) to become the largest Ethereum Layer 2.
This important milestone highlights the growing influence of the Base ecosystem. what you are getting We gained traction thanks to strong support from Coinbase. In contrast, more than 90% of Arbitrum holders remain without money.
what is happening @arbitrum 🤔?
More than 90% of holders have lost their funds.
data: @totheblock https://t.co/pUE0Xl54jD pic.twitter.com/YLUNb81ibv
— Champagne Mami💕 (@EkponoAkwaowo) October 15, 2024
The main driver of Base's growth is Aerodrome, the dominant decentralized application (dApp) on the network, which currently controls 55% of the ecosystem's liquidity. Aerodrome’s expansion is primarily driven by the evacuation of the AERO token, whose two largest liquidity pools contribute significantly to the platform’s TVL.
Since Base upset Arbitrum with TVL over the weekend, we decided to take a look at what was driving TVL's ~$900 million growth last month.
Among the top DAPPs, Aerodrome maintains a 55% advantage and has the highest growth in terms of % and $. This makes sense. Because in most cases… pic.twitter.com/LaYmmbG6iy
— Abdul (@0x_Abdul) October 15, 2024
The first liquidity pool (LP), featuring the ETH and super OETHb pair, was launched just four weeks ago and already holds an impressive TVL of $457 million. Super OETH is Origin Protocol’s liquid staking ETH, and while the pool size is impressive (2.5x that of Lido’s largest stETH LP), the generated volumes and fees remain relatively low.
The second major LP, the USDC-AERO pool, has accumulated over $160 million in TVL with an attractive APR of 60%. This growth goes hand-in-hand with AERO’s impressive 3x price increase over the last month, increasing confidence in the protocol.
Learn more about Base TVL Surge
The meteoric rise in Base’s TVL is closely tied to Aerodrome’s success, with its liquidity hub status trickling profits into all protocols in the ecosystem. While the sustainability of Super OETH’s rapid growth is uncertain, it has set a strong precedent for other liquid staking protocols to build liquidity on top of Base.
Additionally, @Circle's USDC and EURC processed nearly $250 billion in transfer volume on Base in September, surpassing Ethereum Layer 1's $214 billion in the same period. Base's momentum firmly positions the company at the forefront of Layer 2 solutions.
' @maruUSDC and EURC remittances reached nearly $250 billion @base In September 🤯
For comparison, Ethereum L1 generated $214 billion in revenue during the same period pic.twitter.com/4k9HlBCrR2
— Milk Road (@MilkRoadDaily) October 15, 2024
Disclosure: This is not trading or investment advice. Always do your research before purchasing any cryptocurrency or investing in any service.
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