In addition to SociaFi’s increased activity, Franklin Templeton attributed the increase in Base’s activity to meme coins and the increased supply of Circle’s USDC stablecoin on the network.
Depending on the The Ethereum Layer 2 blockchain developed by Coinbase Global Inc (NASDAQ: COIN) currently accounts for approximately 46% of all SociaFi (social finance)-related transactions, according to a report by Franklin Templeton, Base. With this significant market share, Base competes with other blockchains in the same niche, such as Polygon and BNB Chain.
SociaFi applications as population grows
According to a Franklin Templeton report, “Base has hit a home run in the SociaFi world with several leading crypto-based social applications built on Base.” Franklin Templeton added that Base has a strong combination of SociaFi applications and direct integration with Coinbase users.
According to Franklin Templeton, this positions Base to remain a leader in the Ethereum Layer 2 ecosystem. The increased activity on Base is due to the launch of Friend.Tech’s native token, FRIEND, and the deployment of version 2 last week.
It’s bass season pic.twitter.com/kAhcwkpreE
— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
Friend.Tech is a mobile-only application that financializes users’ social value on the platform. The application is best known for its unique invitation-only networking service that grants users access to creators’ private chats and content using social credentials known as “keys.”
Another unique feature of Friend.Tech lies in the fee structure employed. The platform charges a 5% fee for transactions performed within the network. This mechanism incentivizes users to engage in stock trading while contributing to the platform’s revenue stream. In particular, users can tokenize social networks by purchasing shares from other user accounts.
Friend.Tech has generated $1.42 million in protocol fees per day since its launch in August 2023. Amazingly, the platform has reportedly registered over 100,000 users and generated around $25 million in revenue in just two weeks.
According to DeFiLlama data, Friend.Tech’s total value locked (TVL) is approximately $13.4 million. As of this writing, FRIEND is trading at $2.26, up 25% in the last 24 hours, according to data from CoinMarketCap. The current market capitalization also amounts to $34.9 million.
In addition to SociaFi’s increased activity, Franklin Templeton attributed the increase in Base’s activity to meme coins and the increased supply of Circle’s USDC stablecoin on the network. Base meme coins like BRETT, DEGEN, and TOSHI have risen significantly in recent months, according to CoinGecko data.
Base dominates the Ethereum L2 sector.
Recent data from Block shows that Base is outperforming its competitors in terms of revenue and transactions. As of Thursday, Base had generated more than 60% (about $355,000) of total Layer 2 revenue ($583,000).
On the same day, Base’s seven-day moving average of daily transactions was 2.5 million, nearly five times more than Optimism and one million more than Arbitrum. It is worth noting that Base is built using Optimum’s stack and leverages optimistic rollups to streamline off-chain transaction processing.
Additionally, Base has the highest transaction count metric when compared to its ZK Rollup Layer 2 competitors.
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