Coinbase’s Base Network Emerges as Meme Coin Hub, TVL Hits $2.2 Billion

Coinbase’s Layer 2 solution, Base, has surged past $2.2 billion in Total Value Locked (TVL), marking a remarkable 43.61% increase in just one week. Meanwhile, it took the Coinbase Base network nearly 203 days to reach the $1 billion TVL & 25 days to reach 2.2 billion. All thanks to the Ethereum Dencun upgrade which went live on March 13.

Ethereum Upgrade Resulted in $2B TVL

Historically developers favored Solana over Ethereum for launching meme tokens due to its lower fee structure, facilitating easier trading and inexpensive token presales. Due to this solana-based meme coin sparked the popularity of tokens like Dogwifhat (WIF), Book of Meme (BOME), and Slerf (SLERF).

Perhaps the launch of the recent Ethereum Dencun upgrade on March 13 has significantly reduced gas fees on Ethereum Layer 2s, fulfilling its promise of a 10x reduction.

The resulting decrease in gas fees has lured developers and traders back to Ethereum, the blockchain where the meme rush originated.

BASE – Next Meme Coin Wave

Notably, Coinbase’s Layer 2 solution, Base, has been a major beneficiary of this fee reduction. Since the Dencun upgrade, Base has experienced a substantial decrease in fees, leading to a surge in user interest. 

Over the past month alone, Base has doubled its Total Value Locked (TVL), surpassing $2.2 billion. Meanwhile, In March, daily new users surged to 800,000, revenue spiked from $18 million to $28 million, and daily transactions skyrocketed from 500,000 to 2 million.

This surge is partly credited to the Ethereum Dencun upgrade, which significantly slashed network fees, positioning Base as a strong competitor for high-frequency trading.

Network on the Rise

Jesse Pollak, the architect behind Base, revealed that a significant portion of Coinbase’s revenue is allocated to Base’s development.

This strategic investment underscores Coinbase’s vision of leveraging Base as a gateway to the crypto market for its over 110 million users. The integration with Coinbase’s vast user base provides an ideal environment for user acquisition, addressing a common challenge for new blockchains.

In a related development, Coinbase CEO Brian Armstrong initiated a soulbound NFT airdrop on Base, potentially setting the stage for a Base token airdrop.

Meme Tokens on Base Surge

While the rally of meme coins on Solana has slowed down, their counterparts on Base have witnessed significant growth. Meme tokens like TOSHI and Briun Armstrong (BRIUN) have recorded substantial gains in the past few days.

According to analyst Miles Deutscher, a systematic approach focusing on tracking token trading volumes and holder counts can uncover promising opportunities within this space. 

Toshi Base, for instance, stands out due to its robust community and status as a first mover in the meme token arena.