TL;DR
- Base’s Leadership in SocialFi: Base, an Ethereum L2 solution, now handles 46% of all SocialFi transactions, surpassing BNB Chain and Polygon, and is backed by Franklin Templeton’s declaration of the upcoming “Base Season.”
- Strategic Growth and User Engagement: Base’s strategic initiatives have led to a daily transaction volume of 1.48 million and a TVL growth from $1 billion to $5.4 billion in three months, indicating strong user adoption and market confidence.
- Coinbase’s Role and Future Prospects: Coinbase’s launch and support of Base have been pivotal to its success, with the platform now seeing a surge in meme coins and $20 billion in USDC transactions, pointing to a robust and expanding ecosystem.
Base, an Ethereum Layer 2 (L2) solution, has been identified by Franklin Templeton as a leader in the Social Finance (SocialFi) space. With 46% of on-chain SocialFi transactions, Base has outpaced competitors like BNB Chain and Polygon, marking the beginning of what the trillion-dollar asset manager calls “Base Season“.
It's Base Season pic.twitter.com/kAhcwkpreE
— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
The rise of Base is attributed to its strategic positioning to capture a significant share of SocialFi activity. This sector, which blends social media and decentralized finance (DeFi), allows users to monetize content and engage with communities in innovative ways.
Base’s dominance is particularly evident in its support of applications like Friend.tech, which enables creators to monetize their content through “key” shares or “tokenized attention” schemes.
Franklin Templeton’s report highlights the role of Coinbase, the cryptocurrency exchange that launched Base, in the platform’s success. Coinbase’s backing has been instrumental in its rapid growth, providing a secure, cost-efficient, and builder-friendly environment for Ethereum Virtual Machine-compatible applications.
Base’s Record-Breaking Transaction Volume and User Engagement
The latest insights from IntoTheBlock highlight the distinctive user engagement and transaction handling capabilities of Ethereum’s Layer 2 (L2) networks. Base has emerged as a prominent player within this innovative landscape, recording an impressive daily transaction volume of 1.48 million, signaling its growing popularity and adoption in the Ethereum ecosystem.
The term “Base Season” reflects the asset manager’s belief in the platform’s potential for long-term adoption and growth. Base’s Total Value Locked (TVL) has seen a remarkable increase from $1 billion to $5.4 billion in less than three months, showcasing the growing user participation and confidence in the platform.
Moreover, the popularity of Base is further bolstered by the emergence of Base meme coins and the significant volume of USDC transferred on the platform, which reached over $20 billion in April alone. The Coinbase, Base, and USDC flywheel continue accelerating, indicating a robust ecosystem and a promising future for Base.
As the crypto world watches, Base’s ascendancy in the SocialFi realm is a testament to the innovative spirit of the blockchain industry. With Franklin Templeton’s endorsement, the crypto community may indeed witness a flourishing “Base Season,” setting a new standard for social engagement and financial empowerment on the blockchain.
