Original Author: Jaden
Two weeks after the launch of Friend.tech on the Base chain, the user activity gradually decreased, and there was even a net outflow of ETH from the contract on August 22nd. Currently, the total amount of ETH remaining in the contract is around 3,500 coins, worth about $5.8 million. How is the development of the Base chain ecosystem other than Friend.tech?
1. On-chain data
1. TVL
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As of August 27th, the TVL of the Base chain reached 292 million, ranking fifth in the Layer 2 network and accounting for 3% of the Layer 2 market share. Both Base and zkSync have experienced slow TVL growth and relative stagnation.
2. Trading volume and active address count
The number of daily active addresses and daily transaction volume experienced two rapid growth periods, corresponding to the launch of the Base chain mainnet and Friend.tech. As of August 31st, the number of daily active trading addresses was 77,000, and the number of daily transactions was 356,000, both lower than Layer 2 networks such as Arbitrum, Optimism, and zkSync.
The trading volume of DEX on Base reached a low point on August 3rd after the end of the meme coin market. Subsequently, a series of new project trading volumes rebounded on-chain, but after the market downturn on August 16th, the trading volume began to shrink again.
2. Ecosystem projects
As of August 27th, the official website of Base has listed a total of 143 projects/partners. Defillama has listed a total of 69 projects, with only 23 projects having a TVL exceeding 1 million, of which 12 are DEX.
DEX
The initially high-volume DEX on the Base chain were Leetswap and Rocketswap, but both experienced security incidents.
Currently, the leading native DEX is Aerodrome, and its TVL is in a fragmented first place. This DEX has just launched liquidity mining and provides a high APY. Aerodrome is a Base liquidity layer developed jointly by the Velodrome and Base teams and partners. The initial supply is 500M AERO, of which 450M (90%) will be locked as veAERO. The initial circulating supply of AREO is 10M, and the weekly release amount will increase by 3% based on the previous week’s amount during the 1st to 14th cycles. From the 14th week to approximately the 67th week, the weekly release amount will decrease by 1%. Overall, AERO is a mining coin, and its circulating supply has grown rapidly in a short period of time. After the launch of Baseswap and Alien base on Aerodrome, both TVL and price have declined.
Lending
Currently, the largest lending protocol on the Base chain is Compound, with a TVL of 23.35 million. The next is the native lending protocol Moonwell of Moonbeam, with a TVL of 19.42. Aave voted and went live on the Base chain on the evening of August 20th, and its current TVL is 1.68 million.
The deployer of the largest native lending protocol Magnate Finance on the Base chain is associated with the solfire scam, and the Twitter account of the project has been deactivated. The TVL of other lending protocols, Grannay Finance and UncleSam protocol, is less than $1 million, and they have no competitive advantages in terms of brand, security, and liquidity compared to established lending protocols like Compound and Aave.
Derivatives
EDEBASE has implemented a hybrid liquidity mechanism that allows ELP holders to provide liquidity through a smart router. 45% of the protocol’s revenue is distributed to ELP token holders and stakeholders, similar to GMX. The current TVL is 0.19 million.
Meridian Trade offers interest-free stablecoin lending, leveraged trading, and zero-slippage trading. Users can trade whitelist cryptocurrencies with up to 50x leverage and obtain interest-free over-collateralized loans in ETH. The current TVL is $50,000.
Social Platform
Friend.tech gained popularity and attracted a large influx of funds in mid-August. However, starting from August 22nd, there has been a phenomenon of capital outflow and a significant decrease in trading activity on Friend.tech.
Games
LianGuairallel is a collectible card game that raised $50 million in financing in 2021, with a valuation reaching $500 million at one point. At the end of July, the game’s beta testing was launched, and its NFT cards were forged on the Base chain.
Summary
Native projects on the Base chain are prone to Rug incidents. From a price performance perspective, there is higher risk in secondary participation. From an ecosystem development perspective, popular projects like Unibot are still actively joining the Base ecosystem.
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