As the market becomes increasingly saturated, the Base chain is gradually emerging as a potential gathering place for the new generation of 'Degen Players'.
Written by: BTC_Chopsticks
The 'Degen Play' has always been a symbol of Solana. However, as the market becomes increasingly saturated, the Base chain is gradually emerging as a potential gathering place for the new generation of 'Degen Players'. The rise of highly anticipated tokens and AI agents has 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 an Ethereum-based Layer 2 solution that highlights low transaction fees and more convenient on-chain operations. It allows millions of centralized exchange users to easily interact on-chain without needing to create wallets or back up seed phrases. According to data, Base's total value locked (TVL) has exceeded $2.49 billion, with a daily trading volume reaching $613 million. On October 26, 2024, Base led all chains in daily stablecoin trading volume, reaching $18.1 billion, capturing 30% of the market share. It not only attracted a large influx of users but also firmly positioned itself among the top five blockchains in TVL, following Ethereum, Tron, Solana, and BNB Chain.
According to the latest a16z (Crypto State 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 Play'.
2. Meme Culture on Base: The Intersection of AI and Memes
The popularity of meme tokens on Base began with the rapid rise of $GOAT, which reached a market cap of about $900 million in just two weeks, driving expectations for a new 'meme coin super cycle'. Based on open-source AI agent meme tokens, many projects (such as @virtuals_io) have created unique trends combining AI and meme tokens on the Base chain. For instance, the market cap of $LUNA reached $178 million, $GAME reached $10.7 million, $CONVO reached $5.8 million, and $MISATO reached $2.5 million, with these AI meme tokens expected to continue growing in the coming months.
In the first half of 2024, AI became a hot narrative in the blockchain space, while the second half is a golden period for meme culture. AI meme tokens on the Base chain, such as $ai16z, 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 the surge in capital flow and market capitalization, the community activity and FDV/holders ratio of meme tokens 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; and the $TOBY token has a market cap of $13.9 million with over 1 million holders. This healthy ratio of holder numbers to market cap indicates strong community support, further enhancing the tokens' upside potential.
It is worth mentioning that the FDV holder ratio, although not a common evaluation metric, provides useful reference in measuring community vitality and upside potential.
Conclusion
The potential of meme culture on the Base chain, especially the potential for a 'meme coin super cycle' that may lead in Q4 2024, brings new opportunities and hotspots to the market. As the integration of AI and meme coins continues to deepen, Base has become a more attractive new venue for 'Degen Play' than Solana. In future investments, investors can focus on the community support and innovative narratives of these tokens but should still proceed with caution and do their own research (DYOR) to better grasp potential opportunities.
