Many public chains will spend money to build a Meme ecosystem, but whether it is useful or not, and how to make it useful, are still controversial. Recently, BSC has also had to rely on the development of the Meme ecosystem to drive the overall on-chain ecosystem development due to the trend. Specifically, BSC announced the release of 4.4 million in liquidity incentives for Meme tokens a while ago on the 17th. I believe many people can also feel their determination to develop the Meme ecosystem recently, whether it is from the management, ecosystem construction, infrastructure, or community, they are all focusing on this development. They have launched a series of support: 1. Liquidity incentive plan (spending money) 2. Ecological cooperation (let the ecology spend money) 3. Infrastructure development (make the infrastructure more suitable for meme transactions) Today, I will use three indicators to show you their effectiveness, one to let everyone know the results of the BSC Meme ecosystem, and the other to let other ecosystems know the potential effects of this approach. The article is roughly divided into three parts: 1. Summary of the important development timeline of BSC from early February to March 11 2. Observe the development results of the BSC Meme ecosystem from three dimensions 3. Summary & Development Suggestions Formal start: Important timeline: - February 6: CZ responded to TST - February 9: Binance announced the launch of TST - February 11: CZ announced on Twitter that "BNB Chain has been confined for too long, it's time to break the shackles" - February 12: Released the target areas for BNB Chain build in 2025 - February 13: CZ announced that he would post a dog photo & name in three hours - February 15: Improved BNB Chain to ensure that high bids transactions can be packaged - February 17: Educated users on how to avoid malicious MEV; Announced the launch of a 4.4 million meme liquidity incentive plan - February 19: Announced the winner of Day 1 of the meme liquidity plan - February 20: Announced the winner of Day 2 of the meme liquidity plan - February 21: Announced the winner of Day 3 of the meme liquidity plan; CZ will personally experience on-chain products - February 23: CZ first used DEX's AMM, LP and other functions, and said that the user experience of DEX needs to be improved; BNBChain announced to increase the TVL incentive plan for 1 month - February 24: Foresight Ventures promised to invest $25 million to support BNB Chain's BIA program projects; AI Hack Workshop awarded over $500k; Gas free plan; Cooperation with Trustwallet & GMGN - February 28: BNB Incubation Alliance held an event in Denver - February 27: PinkPunkBot supported BNBChain - March 3: CZ said that Ronaldinho's STAR10 token would be exclusively issued on BNB Chain - March 4: Released an article "What is BNB Chain Thinking in 2025?" - March 6: BNB Chain released a bug bounty with a prize of 100k; Hosted a "What kind of hackathon do we need" twitter space; Held a series of featured activities - March 7: Provided $4.4 m in liquidity support to top memes; Pascal hard forked, introducing gas abstraction, smart contract wallets, bundled transactions, etc. - March 10: BNB Chain announced the second round of liquidity support plan Now formally enter the analysis section: · TVL changes · On-chain activity indicators · Ecosystem token prices TVL: - BSC's TVL decreased from $5.5 billion at the beginning of February to $4.7 billion, a decrease of 14%. The TVL of other chains decreased from $112 billion to $82 billion, a decrease of 26%. - During this period, the changes in BSC's TVL followed the changes in total TVL, but it was clearly found that the inflow of funds on February 9 and February 13 was higher than other times. Other chains mainly had higher inflows on February 4, March 1, March 3, and March 5; BSC had higher outflows at similar times as other chains. (Look at the % change) On-chain activity indicators: - Active address count: BSC's Meme initiatives during this period did not bring stable user growth, with only March 13, 14, and 19 seeing significant user growth, but quickly returning to normal (maintaining at 1-1.5m). And in the latter half of the period, Sui's active users have been steadily growing and have surpassed BSC. - Daily transaction volume: The transaction volume saw obvious breakthroughs on the 13th and 19th. But in the latter half of the period, it was caught up by Sui and maintained at 4.5-5m. - DEX trading volume: BSC's DEX trading volume still saw growth on the same dates. But the overall trend in the latter half of the period was downward. But Solana's downward trend was more obvious. - Transaction fees: BSC's transaction fees spiked on the 13th after a steady increase, and then remained at the 0.13 level. BSC ecosystem tokens with a market cap over 100m: Over 90% of the 100m tokens are in decline. Only ACT has seen an increase of over 100% during this period. Other tokens like OM, NFT, and CHEEMS also have some gains, basically around 5%. BSC tokens of different market caps: During this period, the 50-100m group performed the best, while the other groups were basically in a pure downward trend. BSC tokens in different tracks: During this period, the Meme track performed the best, while other tracks maintained a decline of over 20% in the past 30 days. Summary: · The TVL has declined significantly, but the percentage decline is not as high as the total TVL of other chains. In addition, the increase in TVL is not closely related to BSC's Meme liquidity incentive plan during this period: 1) There was no significant increase in TVL the day after the plan was implemented 2) The subsequent plans did not show a reverse trend in TVL growth 3) The subsequent plans basically did not see TVL growth rates exceeding other chains. · The on-chain activity indicators only saw increases on March 13 and 19, and then returned to normal. This means that the Meme liquidity plan did not bring stable user growth indicators to BSC. · From the performance of token prices, both large and small tokens are declining, only the mid-cap tokens have seen an upward trend. In addition, Meme may have brought some buying volume due to the liquidity incentive plan during this period, so it performed the best among the 4 tracks. But another track that BSC is focusing on, Ai agent, did not have the same trend, which may mean 1) Meme is grabbing liquidity from other tracks 2) Ai agent does not have enough appeal to attract users to buy. Overall, this round of BSC's Meme plan can be seen that the effect is actually not very good, although it has brought short-term wealth effect, liquidity, and users, but these are not sustainable in the long run. Some small thoughts: I think the core purpose of Meme is similar to the catfish effect, using the wealth effect to drive users, and the good user experience will force the infrastructure development. The development of infrastructure can further give the public chain team confidence to go large-scale. Thinking from this perspective, I think the Meme ecosystem should be done. But as for whether to do it or not, how to do it, and how much money to spend, I don't have a good idea yet, as I'm not an expert in this area, so I'll leave it to the comments from the brothers and sisters. Original link

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