- 93.5% of community votes back migration to Base, citing retail growth and stagnant Polygon TVL.
- Polygon’s TVL drops to $725M as Base and Arbitrum dominate with $2B+ each.
What happened: A Web3 gaming protocol’s strategic pivot
Aavegotchi, a Web3 gaming-focused NFT protocol, has decisively abandoned Polygon in favour of Ethereum layer-2 chain Base following a 93.5% community vote on April 8. The move, outlined in founder Dan’s February proposal, stems from Polygon’s stagnating ecosystem growth and Base’s retail-friendly infrastructure. Aavegotchi will sunset its Polygon smart contracts and redeploy on Base, leveraging the latter’s ties to Coinbase and perceived longevity.
Polygon’s struggles are underscored by its total value locked (TVL) plummeting from $10B in 2021 to $725M, per DeFiLlama. By contrast, Base and rival Arbitrum each boast over $2B TVL. Dan criticised Polygon’s lack of gaming-focused updates, stating it failed to enable “ecosystem coherence” for developers. Base, meanwhile, offers “performant” infrastructure and smoother retail onboarding—a priority as Aavegotchi’s parent studio, Pixelcraft, cuts costs amid a crypto downturn exacerbated by recent US tariff proposals.
The protocol’s NFT collectibles, customizable with wearables and tradable onchain, aim to thrive on Base’s lower fees and Coinbase-backed user base. This shift aligns with Web3 gaming’s push toward scalable, cost-efficient chains as memecoins and NFTs face volatile demand.
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Why it’s important
Aavegotchi’s migration highlights the intensifying competition among Ethereum layer-2 chains. TVL, a critical DeFi metric reflecting liquidity and user trust, has become a battleground, with Base and Arbitrum eclipsing older networks like Polygon. Base’s rapid ascent—fueled by Coinbase’s retail reach—suggests centralized exchanges’ growing influence in layer-2 adoption, potentially reshaping developer loyalties.
For gaming protocols, infrastructure scalability and cost efficiency are non-negotiable. Polygon’s stagnation in TVL and feature development contrasts sharply with Base’s aggressive ecosystem incentives, including grants for gaming projects. This dynamic risks fragmenting Web3 gaming’s infrastructure, as chains vie to attract developers with tailored tools.
The move also underscores broader market pressures. With Pixelcraft Studios reducing headcount to extend its financial runway, Aavegotchi’s pivot reflects survival strategies amid declining NFT trading volumes and macroeconomic uncertainty. As layer-2 chains consolidate dominance, their ability to retain protocols like Aavegotchi could dictate long-term viability in an increasingly crowded market.
