Base TVL rises $200 million after Aerodrome DEX launch, with developers pushing for enhanced liquidity


  • Base network total value locked has hit $391.53 million, rising by more than $200 million in five days.
  • It comes after the Aerodrome launch, with the decentralized exchange accounting for almost 52% of the network’s TVL.
  • The epic rise comes as developers join hands to enhance liquidity and boost the Base ecosystem.

Base network Total Value Locked (TVL) has recorded an epic surge over the past week, with the Coinbase incubator program drawing in developers who want to process large volumes of transactions on the mainnet.

Also Read: What BASE and Optimism’s collaboration means for OP price

Base TVL skyrockets after DEX launch

Base TVL is $391.53 million at the time of writing, $201.53 million higher than on August 28, just before the launch of the Aerodrome decentralized exchange. This is not a mean feat, considering Base is barely a month old and has already ascended to secure the fourth position among Ethereum Layer-2 (L2) blockchains. Its peers include Arbitrum One, Polygon, and OP Mainnet.

A rise in TVL indicates that user deposits are rising, which points to user interest in the DEX. DeFiLlama data shows that The DEX’s TVL is $197.9 million, accounting for 51.58% of the entire mainnet total value locked.

BASE TVL

Aerodrome DEX and its intention for launching on base Mainnet

Aerodrome is a decentralized exchange released by the largest DEX protocol on OP Mainnet, Velodrome Finance. It runs on Coinbase’s Layer 2 Base network, released by more than 20 collaborators. The Velodrome team launched Aerodrome on Base as part of a commitment to capture a sizeable part of the network’s liquidity and value exchange. Ideally, it is the same thing they did on OP Mainnet (previously Optimism), using DeFi incentives.

It is worth mentioning that the launch of Aerodrome on Base mainnet has proved value adding to the network, multiplying the network’s liquidity a hundredfold, an action that has helped complete its DeFi ecosystem courtesy of the new partners. 

Open Interest, funding rate FAQs

How does Open Interest affect cryptocurrency prices?

Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of an increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is regarded as a sign of liquidation in the market; investors are leaving, and the overall demand for an asset is declining, fueling a bearish sentiment among investors.

How does Funding rate affect cryptocurrency prices?

Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis

BTC

ETH

XRP