In a remarkable turn of events, Base, the Layer 2 network developed by Coinbase, has eclipsed both Ethereum and the BNB Chain in decentralized trading volume. As of January 22, Base recorded a stunning $16.5 billion in weekly transactions, surpassing Ethereum”s $13 billion and BNB Chain”s $15.6 billion, according to data from DefiLlama.
This surge in trading activity has been largely fueled by the dominance of popular decentralized exchanges, particularly Uniswap and Aerodrome, which drew significant liquidity to the network. Furthermore, the recent launch of the FootballFun protocol”s FUN token has played a pivotal role in the liquidity rotation, attracting a wave of new users and speculative investments.
The excitement surrounding the GameFi sector, combined with endorsements from influential figures such as Jesse Pollak, has significantly contributed to the influx of new participants into the Base network. Despite this impressive growth, it is worth noting that Solana remains the dominant player in the market, boasting over $26.6 billion in weekly volume.
Base”s meteoric rise suggests a shift in user preference towards platforms offering lower transaction fees and seamless integration with institutional services. The launch of the FUN token, which includes a substantial 20-million-unit airdrop and liquidity rewards, has created additional incentives for users to migrate towards Base.
Looking ahead, the sustainability of Base”s current trading volume will be closely monitored, particularly as the excitement around new token launches begins to taper off. Additionally, stakeholders will need to keep a watchful eye on Aerodrome”s ability to maintain its market share amidst the growing competition from other protocols aiming to attract this new wave of users.
