August Outlook: New Moves from Basechain, SHIB Layer2, GNS, and Frax

2023.08.01

August Outlook: New Moves from Basechain, SHIB Layer2, GNS, and Frax

At this point in the Layer2 war, Shib's Layer2 does not have a clear competitive edge.

2023.08.01 - 11:20:47

BasechainSHIBLayer2GNSFrax

Navigating Web3 tides with focused insights

At this point in the Layer2 war, Shib's Layer2 does not have a clear competitive edge.

By: Yu Zhong Kuang Shui

GM or GN

August outlook is here.

A lot will happen in August, but for brevity, I’ll only cover S-tier events, analyses, and corresponding opportunities as I see them.

This piece will touch on:

- Basechain

- SHIB Layer2

- GNS

- Frax v3, RWA, frxETH v2

- SEI & CYBER, LTC, GMX, EVMOS, SSV, SPARTA, LOOT, APE

Basechain

The launch of Basechain was unexpected. However, based on my previous conclusion from the Pauly incident—that meme coin risks are growing—I did not actively participate in Basechain meme coins, even though I envied those who got rich quick. In the end, I chose not to join.

My expectations for Basechain still center around $OP and $VELO. I’ve bought some and traded a few swings. I did detailed analysis prior to these trades, and after $VELO trading concludes, I’ll do a thorough post-mortem.

Another point worth watching is whether early Basechain ecosystem projects offer any real opportunity, but so far no standout protocol has emerged. We’ll keep watching.

SHIB

The main opportunity for Shiba Inu lies in its upcoming Layer2 launch (to be announced at the summit; developers have mentioned a near-term release). Reacting now is likely too late, as $BONE has already surged. However, $LEASH may still have potential—it’s currently priced close to my entry level. At this stage, there isn’t much depth to explore with SHIB Layer2. Given how fierce the current Layer2 war is, Shib’s L2 doesn’t stand out competitively. Often, it's time to exit right before the利好 (positive news) materializes.

GNS

I’m closely monitoring the upgrade that enhances utility for the native $GNS token. Previously, the GNS team received 16% of protocol revenue. To boost $GNS growth, an additional 1 million $GNS will be minted (increasing supply by 3.3%) and allocated to the team, which can only stake it over one year (the team previously held 1.27M $GNS). Additionally, to adjust and compensate NFT BOT holders’ income, another 3.36M $GNS (supply +11%) will be issued as incentives, with 6-month linear vesting and a 25% penalty for immediate redemption. Staker rewards will also increase from 33% to 61%. This will take place in September. I’ll continue tracking this and provide data-driven analysis later (in a new article).

https://medium.com/gains-network/gns-tokenomics-plan-q3-2023-260c64ddd560#96bb

Frax Finance

The Frax founder previously stated that Frax v3 would launch within 30 days, meaning it should arrive in August. Still, I doubt v3 alone can resolve Frax’s current revenue issues. The actual product performance will be key. If metrics are underwhelming, $FXS might follow a typical "sell the news" pattern. Down the line, Frax has frxETH v2 and Fraxchain developments ahead, but the crucial factor remains market adoption. Capitalizing on trends and narratives is where the Frax team excels—so their upcoming RWA strategy announcement is something I’m particularly watching.

https://twitter.com/OuroborosCap8/status/1684890389906698241

BN Launchpool—SEI & CYBER

LTC—Halving event scheduled for August 4.

GMX—v2 may launch in August.

EVMOS—Version 2.0 launches on August 2, featuring updated tokenomics. Further official details are pending.

SSV—Mainnet launch date could be revealed today.

SpartaDEX—$SPARTA launches on August 3. Readers familiar with my alpha calls already know this. I bought an NFT to farm the airdrop, which has already yielded profits (50%-100%). Selling early would’ve been a solid trade, but I’m holding out for the airdrop in hopes of higher returns.

Lootbot—A dedicated airdrop-farming Telegram bot is launching a paid version with $LOOT revenue sharing features.

10KTF—May release a new NFT collection in August. I’ll be watching closely. My guess for the delay in previous releases could be tied to Azuki’s recent high-profile but poorly performing drop. Minting new NFTs may consume some $APE; combined with Yuga Labs’ latest moves, I’ve added $APE to my watchlist.

Lastly, regular readers know I’ve been refining the format of my “Monthly Outlook” series. This article continues that evolution, aiming to deliver higher-density insights. Here, I’ve laid out key event summaries and brief analysis—more detailed breakdowns will come in follow-up articles. This way, efficiency improves.