As a researcher with experience in the blockchain and cryptocurrency industry, I find the growing dominance of Base in the Ethereum Layer 2 sector particularly intriguing. The report from Franklin Templeton highlights Base’s substantial market share in the SociaFi niche, which is driven by the increasing popularity of applications like Friend.Tech.
As a data analyst, I’ve uncovered some intriguing insights from a recent report published by Franklin Templeton. Specifically, I’ve noticed that Base, an Ethereum Layer 2 blockchain created by Coinbase Global Inc (NASDAQ: COIN), accounts for approximately 46% of all transactions within the Social Finance (SociaFi) sector. This significant market presence positions Base in a competitive landscape against other contenders, such as Polygon and BNB Chain, within the same niche.
SociaFi Applications on Base Rises
The Franklin Templeton report praises Base for excelling in the field of SociaFi, as some leading social applications in the crypto sphere are constructed upon it. Additionally, Base boasts a robust connection to Coinbase’s user base through direct integrations, according to Franklin Templeton.
Based on Franklin Templeton’s assessment, Base is expected to continue spearheading the Ethereum Layer 2 scene due to recent developments. The surge in activity on Base can be linked back to the introduction of Friend.Tech’s native token, FRIEND, and the release of version 2 last week.
It’s Base Season
— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
Friend.Tech is a mobile app where users’ social value is monetized. This innovative, exclusive platform relies on “access keys” as social credentials for users to engage in private conversations and view content produced by creators.
Friend.Tech stands out with its distinct payment model. The service charges a 5% fee on all transactions carried out through its network. This arrangement motivates users to participate in stock trading and generates income for the platform. Additionally, users have the opportunity to purchase shares of other users’ accounts, effectively monetizing their social networks.
As a crypto investor, I’m excited to share that Friend.Tech, which went live in August 2023, raked in an impressive $1.42 million in daily protocol fees. Notably, this new platform reportedly welcomed over 100,000 users and amassed approximately $25 million within just two weeks of its launch.
Based on DeFiLlama’s latest figures, Friend.Tech currently has approximately $13.4 million worth of assets locked in its decentralized finance protocol. Meanwhile, as I write this, FRIEND is being bought and sold for around $2.26 each on CoinMarketCap, representing a 25% price surge over the past 24 hours. The overall market capitalization of FRIEND now hovers at around $34.9 million.
In addition to the growing buzz on SociaFi, Franklin Templeton identified two key reasons for the heightened activity on Base: the surge in popularity of meme coins such as BRETT, DEGEN, and TOSHI on this platform, and an expansion in the availability of Circle’s USDC stablecoin within the network. As per CoinGecko statistics, there has been a significant uptick in value for these Base-based meme coins over the past few months.
Base Dominates Ethereum L2 Sector
According to the latest figures from The Block, Base is leading its rivals in both revenue and transaction volume. As of Thursday, Base accounted for over 60% (approximately $355,000) of the total Layer 2 revenue ($583,000).
As a researcher studying blockchain networks, I’ve observed some interesting differences in daily transaction counts between three specific platforms: Base, Optimism, and Arbitrum. On a particular day, the seven-day moving average of daily transactions on Base reached an impressive 2.5 million. Surprisingly, this figure is almost five times higher than what I found on Optimism, and an additional one million more than on Arbitrum. It’s important to mention that Base was constructed using Optimism’s technology stack and employs optimistic rollups to improve off-chain transaction processing efficiency.
Among its Layer 2 rivals, Base boasts the greatest number of transactions based on metric records.
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2024-05-10 18:34