"Degen gameplay" has always been a symbol of Solana. However, as the market gradually becomes saturated, the Base chain is gradually emerging and is expected to become a gathering place for a new generation of "Degen players". In particular, the rise of some highly-watched tokens and AI Agent memes have added a new dimension to Base's potential. This article will analyze why the memes on the Base chain may lead the market in Q4 2024.
1. The rise of Base: Why choose Base?
Base is a Layer 2 solution based on Ethereum, featuring low transaction fees and more convenient on-chain operations. It allows millions of centralized exchange users to easily interact on-chain without creating wallets or backing up seed words. According to data, Base's total locked value (TVL) has exceeded US$2.49 billion, and its daily trading volume has reached US$613 million. As of October 26, 2024, Base led all chains in daily stablecoin trading volume, reaching US$18.1 billion, accounting for 30% of the market share. It has not only attracted a large influx of users, but also firmly ranked among the top five blockchains in TVL, following Ethereum, Tron, Solana and BNB Chain.
According to the latest a16z (Crypto Status Report) data, the number of monthly active addresses on Base has exceeded 22 million, accounting for over 42% of the total active users on EVM chains. This vast user base provides a solid foundation for 'Degen gameplay.'
2. Meme Culture on Base: The Intersection of AI and Memes
The popularity of meme coins on Base began with the rapid rise of $GOAT, which reached a market cap of approximately $900 million within two weeks, driving expectations for a new 'Meme Coin Super Cycle.' Based on open-source AI Agent meme coins, many projects (like @virtuals_io) have created unique trends combining AI and meme coins on the Base chain. For instance, $LUNA has a market cap of $178 million, $GAME at $10.7 million, $CONVO at $5.8 million, and $MISATO at $2.5 million; these AI meme coins are expected to continue growing in the coming months.
In the first half of 2024, AI becomes a hot narrative in the blockchain space, while the second half marks the golden period for meme culture. AI meme coins like $ai16z on the Base chain have attracted market attention, with its virtual version of Marc Andreessen sharing the vision and mission of the AI era in the form of a DAO. Holders can participate in investment decisions within the a16z network, making the combination of AI and meme culture more appealing.
3. Community Activity and FDV/Holders Ratio
In addition to capital flow and soaring market caps, community activity and the FDV to holders ratio of meme coins on the Base chain have also become important indicators. For example, the $DEGEN token has a market cap of $121 million with nearly 800,000 holders; the $TOSHI token has a market cap of $51.2 million with over 460,000 holders; the $TOBY token has a market cap of $13.9 million with over 1 million holders. This healthy ratio of holders to market cap indicates strong community support, further enhancing the token's growth potential.
It is worth mentioning that while the FDV to holders ratio is not a common assessment metric, it provides useful insights in measuring community vitality and potential for growth.
Conclusion
The potential of meme culture on the Base chain, especially the 'Meme Coin Super Cycle' that may lead in Q4 2024, brings new opportunities and hotspots to the market. As the combination of AI and meme coins deepens, Base has become a more attractive new venue for 'Degen gameplay' than Solana. In future layouts, investors should focus on community support and innovative narratives for these tokens, but must remain cautious and do their own research (DYOR) to better seize potential opportunities.
