Original author: Jaden, LD Capital

After two weeks of launching on friend.tech, user activity has gradually decreased, and there have even been net outflows of ETH from the contract on August 22nd. Currently, the total amount of ETH remaining in the contract is around 3500 coins, worth about 5.8 million US dollars. Apart from friend.tech, how is the development of the Base Chain ecosystem?

I. On-chain data

1. TVL

As of August 27th, the TVL of the Base Chain reached 292 million, ranking 5th among layer-2 networks and accounting for 3% of the layer-2 market share. Base and zkSync have both experienced slow growth and relative stagnation in TVL.

2. Trading Volume and Active Address Count

The daily active address count and daily trading volume experienced two periods of rapid growth, corresponding to the launch of the Base mainnet and friend.tech. As of August 31st, the daily active trading addresses were 77,000 and the daily transaction volume was 356,000, both lower than Layer 2 networks like Arbitrum, Optimism, and zkSync.

After the end of the meme coin market on Base, the trading volume of DEX on Base reached a low point on August 3rd. Subsequently, a series of new project transactions appeared on the chain, but the trading volume started to shrink again after a market downturn on August 16th.

II. Ecological Projects

As of August 27th, Base's official website has included a total of 143 projects/partners. Defillama has included a total of 69 projects, with only 23 projects having a TVL exceeding 1 million. Among them, 12 are DEX.

DEX

The initially high trading volume DEX on the Base chain is Leetswap and Rocketswap, but both have experienced security incidents.

Currently, the top native DEX is Aerodrome, and its TVL is in a fragmented first place. This DEX has just launched liquidity mining and provides a higher APY. Aerodrome is a Base liquidity layer developed by the Velodrome and Base teams, along with partners. The initial supply is

500 million AERO, of which 450 million (90% ) will be locked as veAERO. The initial circulation of AREO is 10 million and during cycles 1 to 14, the weekly release increases by 3% based on the previous week. From week 14 to approximately week 67, the weekly release decreases by 1%. Overall, AERO is a mineable coin and its circulation increases rapidly in a short period of time. After Aerodrome is launched, Baseswap and Alien base experience a decrease in TVL and price.

Lending

Currently, the largest lending protocol on the Base Chain is Compound, with a TVL of 23.35 million. The next is Moonwell, the native lending protocol of Moonbeam, with a TVL of 19.42. Aave voted and went live on the base chain on August 20th, with the current TVL at 1.68 million.

The deployment of the largest native lending protocol, Magnate Finance, on the Base Chain is associated with the solfire scam. The Twitter account of the project has been deactivated. The TVL of other lending protocols, Grannay Finance and UncleSam protocol, are all below 1 million USD. Compared to Compound and Aave, these protocols have no competitive advantage in terms of brand, security, and liquidity.

Derivatives

Social Platform

friend.tech caused a sensation and attracted a large amount of investment in mid-August. However, starting from August 22nd, there has been a phenomenon of capital outflow in friend.tech, and trading activity has noticeably decreased.

Games

Parallel is a collectible card game that raised $50 million in financing in 2021, with a valuation of up to $500 million at the time. At the end of July, the game's beta testing went live, and the game placed its NFT cards on the Base chain for forging.

Summary

Base Native projects have experienced multiple Rug incidents on-chain. From a price performance perspective, there is higher risk in participating in secondary projects. In terms of ecosystem development, hot projects such as Unibot are still actively joining the Base ecosystem.