Tech
Coinbase Layer 2 Base takes this industry by storm, captures 46% of transactions
Coinbase’s Layer 2 network – Base – has seen a resurgence in user activity. Franklin Templeton’s latest analysis revealed that Base has received significant traction from SocialFi applications like Friend.Tech.
Friend.Tech’s model, which financializes social interactions, has attracted attention, particularly with the launch of its version 2 platform and the airdrop of its FRIEND token.
Additionally, Base saw a notable increase in USDC supply on its network, exceeding $2.5 billion. This increase coincided with Coinbase’s December 2023 announcement of free USDC transfers to Base via Coinbase Wallet, indicating a strategic move to enhance the Base ecosystem and facilitate seamless transactions for users.
Base Hits Home Run in SocialFi
According to Franklin Templeton’s latest relationship“Base has hit the mark in the world of SocialFi,” with many of the leading crypto-based social applications based on the Layer 2 network. Statistics revealed by the asset manager indicate that Base handles approximately 46% of all SocialFi transactions, making this category a crucial area for network adoption and expansion.
One notable platform on Base is Friend.Tech, a mobile-only application that monetizes users’ social value. On Friend.Tech, users can purchase influencer “keys” or “shares” to access their chat rooms. Friend.Tech recently launched version 2 of its platform along with an airdrop of its token, FRIEND, on May 3.
Currently, FRIEND trades at a market capitalization of $200 million and is wholly owned by Friend.Tech users. The backing of the largest publicly traded US cryptocurrency exchange has been crucial for Base, which, according to Franklin Templeton, has managed to create a powerful combination of SocialFi applications and direct integration with Coinbase users.
As a result, Base was able to forcefully capture a significant portion of SocialFi’s business and maintain its leadership in the Ethereum L2 space moving forward.
Increased user activity
Base saw a notable increase in net ETH deposits reported earlier this week, with figures exceeding 6,500 ETH. In comparison, its competitors Arbitrum and Optimism received significantly fewer deposits, with Arbitrum receiving half the deposits of Base and Optimism receiving only a fifth.
This trend suggests that investors prefer Base for deploying their capital, which can be attributed to its well-established infrastructure and perceived reliability compared to its competitors.
With $5.45 billion in total value locked (TVL), Base is now classified as the third largest Ethereum Layer 2 network, according to L2BEAT. It trails Arbitrum One and OP Mainnet, which locked down $16.14 billion and $6.99 billion, respectively.