Coin Edition -
- The Ethereum Layer 2 network, Base, has seen a vast growth in adoption and activity.
- Franklin Templeton hints at the emergence of a Base Season, reflecting on the platform’s growth.
- The rise of SocialFi applications and the growth of Base memecoins have significantly contributed to the popularity of Base.
Base, a relatively new Ethereum Layer 2 network launched by Coinbase (NASDAQ:COIN), has seen increasing adoption driven by the rise of SocialFi (Social Finance) applications and the growth of Base memecoins. Asset manager Franklin Templeton, in a recent X post, acknowledged the growing demand for Base as the emergence of a “Base Season.”
It's Base Season pic.twitter.com/kAhcwkpreE— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
According to a recent report released by IntoTheBlock, the L2 networks of Ethereum stand out with unique user engagement and transaction management. Among the Ethereum L2s, Base has gained traction, boasting 1.48 million transactions per day.
The blockchain’s ability to maintain large-scale operations is one of the major reasons for the users’ preference for Base over other L2 networks. In addition, the supply of USDC on Base has also increased, currently exceeding $2.5 billion.
Franklin Templeton’s report spotted the surge of SocialFi applications like Friend.Tech is the key driver of the Base’s demand. While most of the crypto-related SocialFi apps are built on Base, more than 46% of transactions on Base are connected to these applications. The report stated, “[It is] positioning itself well to capture a material share of SocialFi activity and remain a leader in the Ethereum L2 sector going forward.’
Sharing insights on Base’s widening adoption and Franklin Templeton’s report, Chinese reporter Colin Wu posted a message on the X platform. Wu wrote, “Driven by memecoins and Friend tech, Base activity has increased significantly.”
Driven by memecoins and Friend tech, Base activity has increased significantly. Currently, about 45% of Base’s transactions are related to SocialFi, and the USDC supply on Base has grown significantly, exceeding $2.5 billion. Coinbase Wallet previously announced that USDC can be…— Wu Blockchain (@WuBlockchain) May 10, 2024
Friend.Tech is one of the most popular SocialFi apps built on Base. Users can monetize their content through “key shares” or “tokenized attention.” The report asserted that the contribution of Friend.Tech in the growth of Base activity is much significant. The platform added that Coinbase has had a supporting hand in the growth as it helped the L2 network to capture about half of the SocialFi market share.
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