Franklin Templeton, a multi-trillion dollar asset manager, suggests that “base season” has arrived with the rise of social finance apps, and that base is leading the way for other Ethereum Layer 2 verticals.
“We are well positioned to capture a significant portion of SocialFi activity and remain a leader in the Ethereum L2 space going forward,” Franklin Templeton said in a May report.
According to one of the charts provided by Franklin Templeton, about 46% of transactions involving SocialFi take place on Base, which has been increasingly taking market share away from the BNB chain and Polygon in recent months.
Franklin Templeton said Coinbase’s support has been key in helping Base capture nearly half of SocialFi’s market share to date.
Friend.tech is probably the most notable SocialFi application built on Base. This allows creators to connect and monetize their content through “core” sharing or “tokenized attention.”
“Base has hit a home run in the SocialFi world,” said Franklin Templeton. This will remain a “key area of interest” for Base’s adoption and long-term growth.
Theta Network, Decentralized Social, Fantasy.top, and Steem are some of the popular SocialFi blockchains and protocols.
Franklin Templeton highlighted the recent memecoin craze as another major reason for Base’s increased network activity.
Related: Coinbase ensures infinite interoperability with Ethereum and USDC.
According to L2BEAT, Base is currently the third-largest Ethereum layer 2 network with a total value pegged at $5.4 billion, behind Arbitrum One and OP Mainnet at $15.9 billion and $6.9 billion, respectively.
However, the base rose from $1 billion to $5.4 billion in less than three months after taking six months to exceed $1 billion.
Meanwhile, Arbitrum One and OP Mainnet have seen their TVL tallies decline over the past two months.
Coinbase officially launched Base last August. According to L2BEAT data, the cryptocurrency exchange is the only sequencer on Base. This means that the chain is completely controlled by the exchange.
However, Coinbase plans to gradually decentralize Base over time.
It is built using Optimism’s OP stack and focuses on providing a secure, cost-effective, and builder-friendly environment for Ethereum Virtual Machine compatible applications.
magazine: 1 in 6 new Base Meme coins are a scam, and 91% have vulnerabilities.