Franklin Templeton Recognizes 'Base Season' Rise amid Surging SocialFi Applications
Summary:
Franklin Templeton, a trillion-dollar asset manager, has indicated the rise of "Base Season" with the increasing popularity of Social Finance (SocialFi) applications. Base, an Ethereum layer 2 vertical, is strategically positioned to take a chunk of the SocialFi market, with nearly 46% of SocialFi transactions currently on Base. Additionally, Coinbase's support was cited as a key factor in Base's growth. Base holds the third position in Ethereum's layer 2 networks with a locked value of $5.4 billion. Coinbase, which officially launched Base in 2021, is the network's sole sequencer, intending to progressively decentralize it over time.
Asset manager Franklin Templeton, which manages trillions of dollars in assets, has indicated that the era of "Base Season" has surfaced due to the growing popularity of Social Finance (SocialFi) applications. Base is outshining its competitors in Ethereum's second layer sphere. The company's May report states, "Base is strategically positioning itself to take a significant part of the SocialFi engagement, thereby maintaining its leadership position amongst Ethereum L2 in future."
Currently, 46% of all SocialFi-related transactions take place on Base. This platform has been successful in increasing its market dominance, ultimately decreasing the shares of BNB Chain and Polygon in recent times. That's according to a graph in one of Franklin Templeton's reports.
Franklin Templeton also indicated that the support from Coinbase has been instrumental in enabling Base to acquire nearly half of the SocialFi market share till date. One of the most prominent SocialFi applications that is built on Base is Friend.tech, which enables content creators to monetize their content via "key" or "tokenized attention" shares.
Franklin Templeton noted, “Base has made a significant breakthrough in the SocialFi domain,” and will continue to be an "important sector to monitor” for the ongoing adoption and growth of Base.
Theta Network, Decentralized Social, Fantasy.top, and Steem are some of the other high-ranking SocialFi blockchains and protocols. Franklin Templeton also pointed out that the recent wave of memecoins has significantly contributed to the surge of Base’s network activity.
Base is the third-most extensive Ethereum layer two network, with a total locked value of $5.4 billion. It only lags behind Arbitrum One and OP Mainnet, which have $15.9 billion and $6.90 billion secured respectively, as per L2BEAT's findings.
Impressively, Base's total value locked rose from $1 billion to $5.4 billion in less than a three month span, having taken six months to reach the initial $1 billion milestone. On the contrary, Arbitrum One and OP Mainnet have witnessed a decrease in their TVLs in the past two months.
Coinbase officially incorporated Base in August of last year. As L2BEAT's information suggests, the crypto exchange is the sole sequencer of Base, which implies that the chain is completely under the control of the exchange.
Nevertheless, Coinbase plans to gradually decentralize Base over time. Developed using Optimism’s OP stack, Base aims to provide a secure, cost-effective, and builder-friendly landscape for applications compatible with the Ethereum Virtual Machine.
In a magazine, it was reported that 1 out of 6 new Base meme coins turned out to be scams and 91% are susceptible to vulnerabilities.
Published At
5/10/2024 2:55:48 AM
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