Coinbase Layer 2 Base takes this industry by storm, captures 46% of transactions

Coinbase’s Layer 2 network, Base, has witnessed a resurgence in user activity. Franklin Templeton’s latest analysis revealed that Base has received significant traction from SocialFi apps like Friend.Tech.

Friend.Tech’s model of financing social interactions has attracted attention, especially with the launch of its platform version 2 and the launch of its FRIEND token.

In addition, Base has seen a notable increase in the supply of USDC to its network, surpassing $2.5 billion. This increase coincided with Coinbase’s December 2023 announcement of free USDC transfers to Base via the Coinbase wallet, signaling a strategic move to boost the Base ecosystem and facilitate smooth transactions for users.

Base Hits Home Run on SocialFi

According to Franklin Templeton’s last report“Base has achieved success in the SocialFi world,” with several of the leading crypto-based social applications built on the Layer 2 network. Statistics disclosed by the asset manager indicate that Base handles approximately 46% of all transactions of SocialFi, making this category a crucial area for network adoption and expansion.

A platform featured in Base is Friend.Tech, a mobile-only app that monetizes users’ social value. At Friend.Tech, users can purchase influencers’ “keys” or “shares” to access their chat rooms. Friend.Tech recently released version 2 of its platform along with an air launch of its token, FRIEND, on May 3rd.

FRIEND currently trades with a market capitalization of $200 million and is fully owned by the users of Friend.Tech. The support of the largest publicly traded US cryptocurrency exchange has been crucial for Base, which Franklin Templeton says has been able to create a powerful combination of SocialFi apps and direct integration with Coinbase users.

As a result, Base has managed to forcefully capture a significant portion of SocialFi’s activity and maintain its leadership in the Ethereum L2 sector moving forward.

Increased user activity

Base has seen a notable increase in net ETH deposits, as reported earlier this week, with numbers 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 only one-fifth.

This trend suggested that investors favor Base for deploying their capital, which can be attributed to its established infrastructure and perceived reliability over its competitors.

With $5.45 billion in total value locked (TVL), Base is now ranked as the third largest Ethereum Layer 2 network, according to L2BEAT. It is behind Arbitrum One and OP Mainnet, which have $16.14 billion and $6.99 billion locked up, respectively.

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