Base Surge: Unveiling the Rise of Ethereum’s SocialFi Powerhouse

Base, a relatively new Ethereum Layer 2 network launched by Coinbase, is experiencing a surge in adoption, fueled by the rise of SocialFi (Social Finance) applications and the growth of Base memecoins. This trend has caught the attention of asset manager Franklin Templeton, who recently acknowledged the growing demand for Base in an X post, referring to it as a “Base Season.”

A recent report by IntoTheBlock highlighted the unique user engagement and transaction management capabilities of Ethereum’s L2 networks. Among these Layer 2 solutions, Base has gained significant traction, recording an impressive 1.48 million daily transactions. This high volume of transactions is a testament to Base’s ability to maintain large-scale operations, a key factor contributing to its popularity among users.

Furthermore, the supply of USDC on Base has also seen a remarkable increase, currently exceeding $2.5 billion. This influx of stablecoins on the network further solidifies Base’s position as a preferred Layer 2 solution.

Base Rise in SocialFi: Franklin Templeton Report

Franklin Templeton’s report identified the surge of SocialFi applications like Friend. Tech is the primary driver behind Base’s rising demand. Most crypto-related SocialFi apps are built on Base, and more than 46% of transactions on the network are connected to these applications. The report stated, “Network 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 took to the X platform, stating, “Driven by memecoins and Friend. Tech, the network activity has increased significantly.”

Friend. Tech, one of the most popular SocialFi apps built on Base, allows users to monetize their content through “key shares” or “tokenized attention.” The report asserted that Friend. Tech’s contribution to the growth of Base activity is significant. Additionally, Coinbase has played a supporting role in Base’s growth, helping the L2 network capture about half of the SocialFi market share.

As SocialFi applications and memecoins continue gaining traction, the Network’s position as a leading Ethereum Layer 2 network will likely solidify further, attracting more users and developers to its ecosystem.

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Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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