By
Bhushan Akolkar
May 17th, 2024
Besides the rising activity on SociaFi, Franklin Templeton also attributed the rise in activity on Base to meme coins and an increase in the supply of Circle’s USDC stablecoin on the network.
According to a report from Franklin Templeton, Base, an Ethereum Layer 2 blockchain developed by Coinbase Global Inc (NASDAQ: COIN) now commands about 46% of all SociaFi (Social Finance) related transactions. With this substantial market share, Base competes with other blockchains in the same niche such as Polygon and BNB Chain.
SociaFi Applications on Base Rises
According to the Franklin Templeton report, “Base has hit a homerun in the world of SociaFi, with several of the top crypto-based social applications building on Base.” Franklin Templeton added that Base has a strong combination of SociaFi applications and direct integrations with Coinbase’s users.
According to Franklin Templeton, this positions Base to remain a leader in the Ethereum Layer 2 ecosystem. The rising activities on Base can be attributed to the launch of Friend.Tech’s native token, FRIEND, and the deployment of version 2 last week.
It's Base Season pic.twitter.com/kAhcwkpreE
— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
Friend.Tech is a mobile-only application that financializes the social worth of users on the platform. The application is well-known for its unique, invite-only networking service that uses social credentials known as “keys” to grant users access to private chats and content from creators.
Another unique feature of Friend.Tech lies in its employed fee structure. The platform charges a 5% fee on transactions performed within its network. This mechanism incentivizes users to engage in trading shares while contributing to the platform’s revenue stream. Notably, users can buy shares of other users’ accounts to tokenize their social networks.
Following its launch in August 2023, Friend.Tech generated protocol fees of $1.42 million in a day. Markedly, the platform reportedly registered over 100,000 users and generated about $25 million within two weeks.
According to DeFiLlama data, Friend.Tech has a Total Value Locked (TVL) of about $13.4 million. At the time of this writing, FRIEND is trading for $2.26, according to CoinMarketCap’s data, demonstrating a 25% increase over the past 24 hours The market cap also now stands at $34.9 million.
Besides the rising activity on SociaFi, Franklin Templeton also attributed the rise in activity on Base to meme coins and an increase in the supply of Circle’s USDC stablecoin on the network. According to CoinGecko data, Base meme coins like BRETT, DEGEN, and TOSHI have risen considerably in recent months.
Base Dominates Ethereum L2 Sector
Recent data from the Block shows Base dominating its competitors in terms of revenue and transactions. As of Thursday, Base generated more than 60% (about $355,000) of total Layer 2 revenue ($583,000).
On the same day, the 2.5 million seven-day moving average daily transaction count on Base is nearly five times higher than Optimism and one million more than Arbitrum. It is worth noting that Base was built using Optimum’s stack and utilizes optimistic rollups to streamline off-chain transaction processing.
In addition, Base has the highest transaction count metrics when compared to ZK rollup Layer 2 competitors.