The New Transformation of the Base Ecosystem: On-chain Narrative Reconstruction and Future Trends

1. Recent Changes in the Base Ecosystem

Since the end of May this year, the Base ecosystem has shown a clear "explosive period". The daily active addresses, TVL, and daily transaction numbers of ecosystem users are all on a rapid upward trend. This is mainly due to the repeated hype of several popular narratives within the ecosystem, attracting wide market attention. From a macro perspective, the global stock market's optimistic sentiment towards the concept of stablecoins is also spreading, especially in the context of a potentially improving regulatory environment, making Base a more favored choice for traditional institutions.

Main indicator changes:

• Active Users: The number of active addresses has increased exponentially, recently hitting a historical high of 3.6 million.
• TVL: The total value locked rose from $2.8 billion in May to a peak of nearly $4 billion, returning to last year's bull market highs.
• On-chain transactions: Since May, the average daily transaction volume has approached 9 million times, reaching the peak of last year's bull market.

2. Analysis of Popular Projects in the Base Ecosystem

1. Virtual: Innovative new mechanism ignites the market

Virtual is one of the most关注ed projects in the Base ecosystem recently, with its innovative new issuance mechanism quickly attracting a large amount of capital and user participation. The price of Virtual rose from $0.5 in mid-April to a peak of $2.5 in early June, an increase of 400%.

Core advantages of Virtual IPO:

• Extremely low financing price: New projects raise funds with a market value of about $224,000, allowing users to participate at a low cost and offering significant potential profit margins.
• Token linear unlocking: Similar to VC coin model, a transparent token economic model with phased unlocking.
• Low risk: Full refund in case of fundraising failure, strict control over project quality.
• Healthy ecological closed loop: Set a 1% fee, return 70% to the project party, incentivizing the project party to increase trading activity.

However, as the platform's popularity increased, early users frequently adopted the "buying new and selling immediately" strategy to obtain high short-term returns, resulting in significant selling pressure on new projects. In response, Virtual launched the "Green Lock Mechanism" in mid-June, imposing a mandatory lock-up period for new buyers. Although this measure helps to extend the project lifecycle, it also significantly alters the original speculative logic, leading to a temporary decline in market enthusiasm. The price of Virtual has fallen from its peak to $1.69, a decrease of over 37%.

2. Kaito: Pioneer of the Attention Economy

As the leading project in the "Information Finance (InfoFi)" sector, Kaito's price has risen from $0.79 to a peak of $2.41 since May, an increase of nearly 205%.

Kaito Core Highlights:

• Yaps Module: Tokenizes the "attention" of content published by users on social platforms, incentivizing the creation of high-quality content.
• Community-driven: Stimulate community participation through weekly airdrops and leaderboard rewards.
• Ecological closed loop: Launching the Yapper Launchpad system based on points ranking and AI-driven Kaito Connect, achieving synergy in content contribution, points distribution, and project selection.
• Open InfoFi network: Allow ordinary users to be rewarded for their information contributions.

Kaito's model brings a new narrative to Base that differs from traditional DeFi, opening up new imaginative spaces in the integration of social and financial sectors.

3. Future Development Trends of Base

With the potential improvement of the regulatory environment in the United States, Base is committed to becoming a bridge between traditional finance and Web3. Its development strategy mainly includes three aspects:

1. Open up the compliance asset on-chain channel: Launched the Coinbase verification pool feature, allowing KYC users to directly use their Coinbase account balance to interact with DApps on Base, simplifying the on-chain transaction process.

2. Build a compliant stablecoin system: Cooperate with traditional financial institutions to pilot the issuance of "compliant stablecoins" and "deposit tokens" on Base, providing a stronger trust foundation for on-chain USD circulation.

3. Build a diverse ecological scenario:

• On-chain US stock trading: plans to launch tokenized stock products.
• Global crypto payments: Collaborate with e-commerce platforms to integrate stablecoins into the checkout process.
• Compliant DeFi: Guiding major DeFi projects to operate in compliance through the KYC module.
• Innovative applications: developing AI Agents and emerging fields like InfoFi.

These three measures aim to build a complete value closed loop for the US dollar stablecoin, from fiat currency on-chain to the landing of real use cases.

High-Potential Projects in the Ecosystem

1. Aerodrome: As an ecological leading DEX, it is expected to gain continuous institutional liquidity support.

2. Uniswap: As a DEX integrated with Coinbase, it is expected to gain more on-chain liquidity.

3. Keeta: A high-performance RWA public chain that may collaborate with Base in the direction of RWA compliance in the future.

4. Creator Bid: The new version introduces mechanisms such as staking and new token creation, enhancing user participation.

5. Upside: The first social-oriented prediction market platform, with the potential to become a new type of application on Base that combines liquidity and content attributes.

Overall, Base is gradually evolving from a transaction-active L2 network into a comprehensive infrastructure for on-chain finance and content. Although some projects are facing a decline in popularity in the short term, in the long run, the narrative continuity and institutional connectivity demonstrated by the Base ecosystem make it likely to become an important bridge for traditional capital entering Web3. For investors, Base is not only a track for hot money rotation but also an important sample for observing the transformation of the cryptocurrency industry towards "compliance, financialization, and practicality."