Why Base’s Extra is so popular

What developments have fueled this growth, and how will EXTRA sustain this momentum?

"While EXTRA holders made huge gains in late February and early March, the price remained stagnant throughout the month until yesterday morning when the token began its parabolic rise."

With As the token price rises, Extra’s Total Value Locked (TVL) has also increased, with this metric increasing 2x from the beginning of this month!

Extra Finance is a lending platform on Base and Optimism where users are able to borrow funds from lenders by relying on whitelisted decentralized exchanges (i.e. Velodrome and Aerodrome ) to provide liquidity to increase its yield.

The cryptocurrency space has seen a sharp increase in on-chain activity in recent weeks, with Ethereum L2 deployed by Extra Finance seeing a further increase in transaction volume this month due to lower data costs from EIP-4844.

The increase in on-chain activity results in an increase in the number of higher-level transactions, thereby increasing the returns that participants can earn on Extra and enabling them to pay higher capital costs. This in turn attracts more TVL to the application.

If L2 maintains a high level of profitability, Extra Finance is fully capable of further increasing usage and TVL. Particularly through its Base deployment, which has been the nexus for Extra's growth throughout the year.

Extra’s continued success on Base, coupled with it being the third largest dApp on the TVL chain, suggests it may be a candidate for Base Ecosystem Fund investment and listing on Coinbase Suitable candidates, both of which could be positive catalysts for price.

Tokens from other popular Base applications, including Aerodrome, have previously been favored by Coinbase to support projects built on its chain.

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