Coinbase Layer 2 Base Takes This Industry by Storm, Captures 46% of Transactions

Coinbase's second layer network – Base – has seen a return of user activity. Franklin Templeton's latest analysis revealed that Base has received significant attention from SocialFi apps like Friend.Tech.

The Friend.Tech model, which funds social interactions, has drawn attention, especially with the launch of its v2 platform and the airdrop of its FRIEND token.

Additionally, Base has seen a notable surge in the supply of USDC on its network, exceeding $2.5 billion. This increase coincided with Coinbase's December 2023 announcement of free USDC transfers on Base via the Coinbase Wallet, signaling a strategic move to strengthen Base's ecosystem and facilitate seamless transactions for users.

Base Hits Home Run in SocialFi

According to the latest news from Franklin Templeton a report“Base has been a huge success in the SocialFi world,” with many of the best crypto-based social apps built on the Layer 2 network. Statistics revealed by the asset manager indicate that Base handles approximately 46% of all SocialFi transactions, making this category a crucial area for the network’s adoption and expansion.

One notable platform on Base is Friend.Tech, an exclusive mobile app that monetizes users' social value. On the Friend.Tech website, users can purchase “keys” or “shares” for influencers to access their chat rooms. Friend.Tech recently launched version 2 of its platform along with its own token drop, FRIEND, on May 3.

Currently, FRIEND is trading with a market cap of $200 million and is fully owned by Friend.Tech users. Supporting the largest publicly traded US cryptocurrency exchange has been crucial for Base, which, according to Franklin Templeton, has been able to create a robust suite of SocialFi apps and direct integration with Coinbase users.

As a result, Base has been able to aggressively capture a significant portion of SocialFi's activity and maintain its leadership in the Ethereum L2 sector going forward.

Increase user activity

The base saw a notable increase in net ETH deposits, as reported earlier this week, with numbers exceeding 6,500 ETH. In comparison, its competitors Arbitrum and Optimism received far fewer deposits, with Arbitrum receiving half of Base's deposits and Optimism receiving only a fifth.

This trend indicates that investors prefer Base to deploy their capital, which can be attributed to its well-established infrastructure and notable reliability over its competitors.

With a total value locked of $5.45 billion (TVL), Base is now Rank As the third largest layer 2 Ethereum network, according to L2BEAT. It trails Arbitrum One and OP Mainnet, which have $16.14 billion and $6.99 billion, respectively.