With the TGE approaching, can SynFutures catch the wind from the Base Protocol ecosystem?

Original Article Title: "TGE Imminent, Exploring SynFutures Market Potential"

Original Article Author: Wilson Lee, Biteye

01Base Ecosystem Thriving, SynFutures Riding the Wave of Growth

Solana is undoubtedly the leader and biggest beneficiary of this round of the "meme" craze, with its powerful wealth effect attracting a large number of loyal users, driving massive ecosystem expansion, and triggering a broader industry trend of "riding the meme to boost the ecosystem."

In Solana's "meme" craze, Pump.fun is undoubtedly one of the biggest winners. Since its launch a few months ago, the platform has accumulated nearly $270 million in revenue.

Simultaneously, the influx of hot money and the growing number of active users have significantly boosted the growth of the Solana DeFi ecosystem. Spot DEX platforms like Raydium and Jupiter, as well as Perp trading platforms like Drift, have leveraged this trend to achieve both business and price growth.

Pump.fun Cumulative Fee Revenue - Data as of November 29, Source: https://dune.com/evelyn233/pump-data

However, with Pump.fun closing its live streaming function due to a series of controversies in late November, Solana's short-term popularity has declined.

At the same time, leveraging the narrative entry point of AI Agent storytelling, Base has smoothly taken over Solana's hot money and traffic in the form of the "meme season."

The sudden popularity of meme issuance projects on Base, such as Clanker and Virtuals, also seems to foreshadow Base incubating opportunities at the level of Pump.fun.

Under the market consensus that Base does not issue tokens, we have reason to believe that DeFi products on Base will capture greater market value during the "Base Season."

As the fastest-growing Perp trading platform in the Base ecosystem, SynFutures has become the de facto leader in the Base derivatives market since its launch on Base in July.

In the third quarter of 2024, SynFutures captured over half of the Base Derivatives Market.

With the launch of the Perp Launch mechanism and the upcoming TGE, SynFutures will further leverage the momentum of Base to continue expanding its market share, achieving double growth in both business and market value.

02Perp Launchpad Powers Value Capture

SynFutures' current achievements are attributed to its outstanding product innovation, excellent operational capabilities, and far-sighted strategic vision.

As early as March, the team set its sights on Blast, launched Base in July, perfectly grasped the market's rhythm, and sustained the momentum of its growth engine.

At the same time, SynFutures, with its innovative Oyster AMM (oAMM) mechanism, successfully addressed the trade-off between capital efficiency and permissionless trading for any asset in the Perp product.

Amidst the significant opportunity presented by the Base frenzy, SynFutures once again innovated its product, introducing the Perp Launchpad feature, making people eagerly anticipate SynFutures' performance in this Base Season.

Note: For more information about SynFutures, please refer to the previous Biteye article: "3 Months to the Top, 50% Market Share, Who is Leading the DeFi New Trend?"

What is Perp Launchpad

Perp Launchpad is SynFutures' perpetual contract issuance platform. Similar to spot issuance, anyone can quickly deploy liquidity on a DEX and launch a token.

SynFutures' Perp Launchpad then brings this flexibility to the Perp track, allowing users to create perpetual contract markets for any crypto asset in a permissionless manner.

Perp Launchpad has certain requirements for assets seeking to issue Perp:

· Asset type limited to ERC-20 tokens on Base

· Spot issuance date cannot be earlier than June 30, 2024

· Minimum 24-hour trading volume must not be less than $1 million

· Has active social media or offline community activities

· Has a price oracle

In the future, the SynFutures team plans to gradually expand the Perp issuance feature to other blockchains.

Although the Perp Launchpad has a short online time, many new small-cap tokens (especially meme tokens) have already been listed in SynFutures' perpetual contract market.

Users can directly engage in contract trading and provide liquidity, among other operations. As user engagement grows and the market further matures, the Perp Launchpad will demonstrate significant potential.

Source: https://oyster.synfutures.com/#/launchpad/base

Strategic Significance of Perp Launchpad

The launch of the Perp Launchpad holds profound strategic significance, not only crucial for SynFutures' own development but also potentially impacting the entire derivatives space.

Firstly, for on-chain degens, the Perp Launchpad provides more trading opportunities and gameplay for small-cap tokens, especially meme coins.

Many small-cap tokens unable to launch derivatives markets on mainstream platforms can swiftly introduce derivatives markets with the support of the Perp Launchpad, offering more leveraged trading opportunities, enhancing market liquidity and activity, and promoting price discovery.

In the meme market full of PVP, if a shorting tool can be introduced, the overall market playability will be greatly enhanced.

Secondly, the Perp Launchpad offers investors more diversified sources of income and risk management tools.

SynFutures' LP market-making incentive mechanism allows investors to earn high annualized returns by providing liquidity. With more types of meme perps listed, the choice of LPs will significantly increase, enhancing investors' earning potential.

For SynFutures, the Perp Launchpad is not only a key growth engine but also has the tremendous potential to capture the Base meme season as a form of performance, further driving its market share and expanding brand influence.

Ultimately, the launch of the Perp Launchpad is significant not only for SynFutures and on-chain degens but also could lay the foundation for further development of the crypto derivatives market.

Through this decentralized, open innovation model, SynFutures aims to drive widespread adoption of perpetual contracts, become an industry-leading platform, and contribute to the mainstreaming of the crypto industry.

A more inclusive derivative trading approach will accelerate the maturation of the crypto market and provide investors with more diversified revenue and risk management tools.

03 Market Performance and Value Potential

On November 25, SynFutures announced the establishment of a foundation and the launch of the $F token, indicating upcoming TGE and airdrop events. Beneath the impressive data, SynFutures' market value potential has become the focus of market attention.

Market Performance

Looking back at the development of the decentralized derivatives track over the past few years, new projects are rising, old projects are fading, making good progress but still holding a negligible market share compared to centralized exchanges, less than 5%.

On one hand, this is related to the DeFi development facing a bottleneck, and on the other hand, the derivatives track has higher speed requirements, and the underlying public chains still have significant bottlenecks in this area, hindering the development and innovation of the track.

Meanwhile, SynFutures generated over $2 trillion in trading volume within 9 months, showing a very impressive performance. The daily trading volume reached as high as $1.7 billion.

The platform ranked 2nd in total platform trading volume in the past 24 hours, second only to Hyperliquid.

According to DefiLlama data, the on-chain perpetual contract trading volume in Q2 and Q3 was $1.1857 trillion, with the top 3 accounting for over 45% of the volume, namely Hyperliquid (16.94%), dYdX V3 & V4 (14.37%), and SynFutures (14.11%).

Value Potential

We assess SynFutures' market potential by capturing Solana's value in Solana DeFi combined with the market performance of Base's native DEX, Aerodrome.

Firstly, SynFutures has firmly established its position at the top of Base's ecosystem. Since launching on Base on July 1st, SynFutures' trading volume surpassed $1 billion within 10 days, with a total trading volume close to $40 billion and a daily average trading volume of $2.4 billion.

The past 24h trading volume accounts for 68% of the Base network, four times higher than the second-placed project.

Compared to projects in the same ecosystem position, SynFutures has significant market potential. According to DefiLlama data, as of the end of November, Solana and Base had TVLs of approximately $9.2 billion and $3.6 billion, with daily trading volumes of approximately $3.6 billion and $2 billion, respectively.

Source: https://defillama.com/chains

Looking at the data from the major DEXs on Solana and Base since November, the following projects' FDV align closely with their operational data, showing a higher corresponding market value from derivative trading volume compared to spot.

Since November, SynFutures' derivative trading volume on Base has approached Jupiter. Therefore, based on data and market value from projects in the same ecosystem position, SynFutures' value potential is considerable.

Data Source: DefiLlama, Coingecko

SynFutures has garnered strong support from numerous top industry institutions during its growth, raising a total of $37.4 million in three funding rounds. Leading investors include Dragonfly, Standard Crypto, Polychain, Pantera Capital, demonstrating high market recognition.

The business of SynFutures has shown strong growth momentum. In addition to its existing dominance on Perp, the SynFutures team has also hinted at a potential launch of spot aggregation trading functionality on Base. Riding the wave of the Base ecosystem, SynFutures will demonstrate tremendous market potential.

04 Summary and Outlook

SynFutures' success is not only due to its outstanding product innovation and market acumen, but also to its close following of industry trends, especially its rapid rise in the Base ecosystem.

In summary, SynFutures' market performance post TGE is worth looking forward to. With the help of the Perp Launchpad, the potential spot aggregation feature, and the potential of the Base ecosystem, SynFutures is poised to lead the Perp track to breakout, becoming the benchmark in the derivatives track!

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