ON–234: Consumer Ecosystems 👥

May 21, 2024

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Consumer Ecosystems 👥

Consumer apps — driven primarily by memes, games, and gambling — are beginning to take center stage. Earlier this month, four new social apps (fantasy.top, friend.tech, pump.fun, YOLO Games) briefly broke into the Top 15 protocols by fees generated (chart from May 7). User numbers are still small (none have over ~20,000 DAUs), but their success from a monetization perspective represents a shift in crypto-native business models towards building proprietary distribution at the app layer.

"Scenecoins" (h/t @joshcrnls) — community memecoins — are a trending new meta. Many scenecoins have implemented tipping as a way to grow their communities, increase token holders, and incentivize engagement: see $degen (428k holders, 5M txns), $enjoy (24k holders, 3.7M txns), $higher (50k holders).

Onchain summer is heating up. Base now processes well over 1M transactions per day and accounts for nearly 50% of all transactions related to SocialFi. Base is also now officially the biggest contributor to Uniswap’s growth (Uniswap has 3.4M MAUs; 1M are from Base).

💦🔬 Tx-Level Alpha: At the end of April, a Hoodie CryptoPunk sold for 105 ETH ($333k), the lowest Hoodie sale in ETH terms in years (note: three sales did come in under that price in USD terms 6-8 months ago).

Worlcoin is an iris biometric crypto project. Worldcoin is the largest single driver of transactional activity on Optimism today, driving 18% of all non-bot transactional activity and 40% of all total fees for the past 30 days.
WorldApp Wallets, the wallet infra enabling users to authenticate their 'Proof-of-humanness', has breached 3.7M - a 100% increased YTD.

Galxe is a multichain identity and credential data network. Galxe UAW on Optimism is ~500-1k daily. This represents just 1-2% of all UAW across all integrated chains. This is 90% lower than the avg. daily active addresses for top DeFi projects on Optimism (e.g. Stargate Finance 12k/day).

Gnosis Safe accounts provide multisig and smart accounts for users and developers. Around 90k Gnosis Safe contracts are deployed daily on Optimism (52% of total). Only 6% of total Safe deposit value is on Optimism with Worldcoin driving larger, lower-value Safe accounts relative to other chains.

💦🔬 Tx-Level Alpha: The attached transaction relates to Sonne Finance hacker who started using the OP bridge to move assets to ETH mainnet. Sonne Finance was exploited for a total of $20M. This came at a time when most other bridges were blocking addresses related to the hacker.

Fantasy Top is a SocialFi platform built on the Blast blockchain which entered the top 5 crypto projects by fees early this month. In Fantasy Top, heroes engage in fierce competitions on Twitter, and users participate in tournaments by buying cards from the marketplace or opening random packs to earn Blast Gold and ETH. Over 82.3k packs have been minted (Each pack contains approximately 5 cards), with a total value of 3.87k ETH. The platform has successfully attracted 34.3k users to its thriving community.

In Fantasy Top, pack prices follow a VRGDA model, and users can level up cards by burning 5 of the same card to get one leveled-up card. These features have prevented an oversupply of cards and maintained a stable ecosystem economy, with the card supply ranging around 200k tokens since launch.

Fantasy Top has earned 4.15k ETH revenue in only 20 days and shares it with heroes. Each hero earns 10% of the pack minting revenue and 1.5% of the trading volume of their cards in the market as profit in ETH. Heroes have collectively earned 530 ETH, mostly from pack minting revenue.

Other applications on Blast have been making waves as well — YOLO Games, a gaming platform, is actually beating Fantasy Top in terms of 24-hour fees as of May 21. The project reached a high of $422,000+ in daily fees on May 9 and is still averaging over $100,000 in fees per day in the last week. Other major consumer projects on Blast include Wolf Game, a hyped project in 2021 which relaunched on the Layer 2, and PEW, a memecoin which raised 3435 ETH over the weekend in an oversubscribed token sale.

💦🔬 Tx-Level Alpha: It appears that due to favorable conditions for Fantasy cards, most marketplace traders are holding their cards. Approximately 75.5% of users have unrealized profits and holding their cards, while 37% have been profitable, and only 7.33% have incurred losses. For example, this address bought 254 cards for 18 ETH and sold 62 cards and earning a realized profit of 55 ETH. Another address bought 94 cards and sold 5 cards and earning a realized profit of 50 ETH.

Pump.fun, a breakout consumer application on Solana - building a memecoin launchpad - was exploited by a former employee for $2M (12.3k SOL) using flash loans to buy out the bonding curve. This comes just days after becoming a Top 3 protocol by revenue, surpassing its parent chain to be the industry's leading application by 24h revenue. Following the incident, trading has been paused on the platform.

Memecoins continue to dominate Solana’s consumer mindshare. Book of Meme (BOME), launched in mid-March 2024 on Solana, aims to revolutionize meme creation and distribution using blockchain technology. After a 24-hour pre-sale, BOME's price surged to $0.0249 on March 16th before correcting to around $0.01167 by May 20th. Despite the dip, BOME remains above its launch price with a market cap exceeding $807 million. The project aspires to be a central hub for meme-related activities, tracking ownership and distribution through blockchain.

Currently, 53,741 unique wallets hold at least 1,000 BOME tokens. The largest holder, aside from exchanges, holds nearly 894 million BOME. Among exchanges, Gate.io, Raydium, and Bybit hold the most, with 16.3%, 11.6%, and 6.8% of BOME tokens, respectively. In the last 30 days, BOME swap volume on DEXs hit $255 million, with 22,000 users. Most swaps occurred on Jupiter, Raydium, and Phoenix, making up 40%, 39.8%, and 19.2% of the volume, respectively.