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Base records 212% increase in perpetual trading volumes

source-logo  cryptobriefing.com 18 May 2024 05:35, UTC

Base is the blockchain with the most significant monthly and weekly perpetual trading volume growth among the 10 largest chains in total value locked (TVL), according to data aggregator DefiLlama. This weekly jump can be attributed to the recently launched perpetual decentralized exchange (perp DEX) JOJO, which has presented a nearly 75% growth in trading volume for the past seven days.

Moreover, JOJO dominated 61% of Base perpetual trading volume over the last 24 hours, surpassing $95 million. Jotaro Kujo, JOJO’s co-founder, shared that there are “quite a lot of real users” trading perpetual contracts.

“I believe someone is farming the airdrops since every project that doesn’t have launched a token will make people somehow believe that they will give airdrops to the early users. But from our market-making results, they are not just wasting their trading fees, they are earning money. Farmers’ activity is just opening and closing positions, paying a lot of gas fees and trading fees to make their total trading volume a big number,” he explained.

Kujo adds that real users are not seen just on JOJO’s platform but on the Base ecosystem as a whole, and that’s why the team chose their infrastructure to build a perp DEX. Despite Arbitrum and Blast having a larger derivatives volume, Base offers engaged users, a significant amount of TVL, and fast growth, he adds.

“Most of Base activity is real. People are there to use it, not just farm it. Another thing we really like, and we think can create a loyal user base in the long term is Coinbase itself. They put a lot of work into making Base easy to use: they have a very strong infrastructure, including sequencers, the bridge, and also oracles. They also made a lot of things to connect Coinbase to Base.”

Furthermore, JOJO is currently only available on Base, and Kujo revealed the team is not planning to go multichain right now. Despite internal discussions among the team, JOJO will focus its development on Base and build a relationship within the ecosystem.

“We want to make the product useful, focus on a very narrow user base to pay a lot of attention to it, and it is impossible if we deploy on five different layer-2 blockchains. As a new startup, we need to focus and avoid a lot of noise from the outside world,” Kujo concludes.