The Daily Edge 2.5.2024

All About That Base?

Chatter of Base Szn started to pick up with recent buzz around Farcaster, which sent DEGEN on base to a $100mm+ ATH. New launches on the chain have started to perform very well with doginme running to a $3.8mm ATH FDV (now $531k) and coin running to nearly $1mm ATH. With Blast mainnet coming in late February or early March, this rotation could have legs. Tokens to watch on BASE include: TOSHI, the primary meme on the chain trading at a $51mm market cap, DEGEN, TYBG (another meme) and FRAME (which is a farcaster / warpcast airdrop token).

Now with all this said, the price action in this ecosystem went from very strong to extremely weak in the past few hours, and volume on the chain is still comparatively low to both SOL and ETH. On SOL, WHALES (mentioned in our February 1st issue) has been up only, running ~2x since our mention and now at a $41mm market cap. WIF on the other hand has fallen ~22% after winning the “WIF Wars” against its ETH counterpart. In case you missed it, over the weekend Issa launched an ETH version of the WIF token and claimed to be the creator of the meme. WIF on ETH ran to a $30mm market cap before eventually falling ~83% after some concerns around insider allocations, charity wallet selling, and of course the “onlyfans” picture from the token’s male creator (not posting it here).

Despite calls for a “SOL TO BASE” rotation, SOL degen volume (measured by TG bot users) continues to dominate ETH, running 4x higher so far today. In my opinion, unless this trend fades, SOL will retain its place as the home of memecoins (though even rotations on the chain are seemingly getting shorter and shorter).

WHAT TO WATCH TODAY

• PANDORA (mentioned in the Feb 2nd newsletter) has skyrocketed to ATHs today of ~$47mm. The team announced a partnership today with VEC and has started to see other projects building around/on top of it. The token is now a volume and liquidity leader on ETH ($20mm / $13mm respectively)

• MOBY is gaining a lot of attention, raising $2.7mm in its Early Access sale. The project which wants to “make ICOs great again” is having a public sale on 2/7 starting at a $30mm FDV.

• $LOOT - this token has started picking up momentum (and is from the same team as WHALES). The project is an airdrop farming bot, which also receives 10% of WHALES revshare (to stakers). If WHALES continues to do well both from a token and revenue perspective, LOOT is worth keeping an eye on

• LBP Dips - The ETH ecosystem in general has been generally soft, and over the past day notable LBPs INS and TRESTLE have fallen ~22%

• NLT - very degen (and kind of hilarious) LBP going on right now that ends in 18 hours. Currently trading at a $3.75mm FDV, NLT allows users to get rewards for brushing their teeth.

• Top 50 Traders - The highest PnL smart money traders according to chainEDGE were largely quiet today, though bought a few clips of VEC and OLAS (only $70k of buys in aggregate).

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THINGS TO KEEP ON YOUR RADAR

• LENDS - This zero liquidation lending project has a lot of hype and is in process on its Ape Terminal IDO. The token’s TGE will be on February 8th, and with $1.9bn TVL, 1mm transactions to date and a starting valuation of $1.3mm market cap / $12.5mm FDV, I could see this getting a lot of attention

• RIVUS - this project is bringing liquid staking to the Bittensor network. I’ve seen it picking up a lot of smart follows recently, though no information on any launch dates or catalysts yet.

• MOR - Morpheus is a pretty hyped up decentralized AI project that will start its bootstrapping period on February 8th

• WARDEN - this intent based cross chain transaction protocol is preparing for airdrops this quarter to QRDO, TIA and ATOM holders ahead of its WARD token launch

• Cyclesmoney - a relatively new project, focused on “combining balance sheets with graph theory”

• Atlas - A generalized execution abstraction protocol for building application specific orderflow auctions on EVM

SMART MONEY CORNER - Powered by chainEDGE

• Notable inflows today into PANDORA, VEC, OBT, ORDS and FI. Along with some net buying on BASE meme coins doginme and coin.

• INS, TRESTLE and RSTK led smart outflows today, though smaller in size at ~$20-30k each

• Older tokens with notable 30 day smart accumulation include: TAO (+116%), MND (+186%), RVST (+131%), VDO (+176%) and FI (+506%)

• On the flip side, bearish 30 day smart balance trends were seen in MUBI (-46%), ORDS (-24%) and AEGIS (-27%)

• From a new launch perspective, doginme, JAN and coin were the most popular over the last 24hr, each receiving $36k+ of smart buys - notably, the 2 base memes were not able to sustain their hype and have bled down to sub $500k market caps

• The CE smart money wallet highlighted in the last issue ended up generating a $20k realized PnL on PANDORA

• In general, chainEDGE smart money aped in size and early on PANDORA, buying an aggregated 666 Pandora tokens for $245k in the first hour at an average price of ~$367. With the token currently trading at $4,400, this will be a pretty sizable win for the CE smart money cohort

MEME OF THE DAY