Coinbase’s Base Network Becomes Central Hub for Meme Coins, Total Value Locked Reaches $2.2 Billion

Title: Coinbase’s BASE Emerges as the New Meme Token Hub After Ethereum Upgrade

Summary:
Coinbase’s Layer 2 solution, Base, has witnessed a surge in popularity following the Ethereum Dencun upgrade. With reduced gas fees and increased user interest, Base has surpassed $2.2 billion in Total Value Locked (TVL). This growth has positioned Base as a strong competitor for high-frequency trading, attracting meme tokens like TOSHI and BRIUN. As Coinbase invests in Base’s development, the platform aims to become a gateway to the crypto market for its vast user base.

Body:
Coinbase’s Layer 2 solution, Base, has seen a remarkable surge in popularity, reaching a Total Value Locked (TVL) of over $2.2 billion. This represents a significant increase of 43.61% in just one week. Surprisingly, it took the Coinbase Base network only 25 days to reach this milestone, compared to the previous achievement of $1 billion TVL, which took 203 days. The catalyst for this growth was the Ethereum Dencun upgrade, which went live on March 13.

Historically, developers preferred Solana over Ethereum for launching meme tokens due to its lower fee structure and easier trading options. This led to the popularity of tokens like Dogwifhat (WIF), Book of Meme (BOME), and Slerf (SLERF) on the Solana network. However, with the recent Ethereum Dencun upgrade, gas fees on Ethereum Layer 2s significantly decreased, attracting developers and traders back to Ethereum.

Coinbase’s Layer 2 solution, Base, has particularly benefited from the reduced gas fees. Since the Dencun upgrade, Base has experienced a substantial decrease in fees, resulting in a surge of user interest. In just one month, Base has doubled its Total Value Locked, surpassing $2.2 billion. Moreover, Base has witnessed a significant increase in daily new users, revenue, and daily transactions. These positive developments position Base as a strong competitor for high-frequency trading.

Jesse Pollak, the architect behind Base, revealed that Coinbase is heavily investing in Base’s development. The company is allocating a significant portion of its revenue to gas grants and builder grants. Gas grants allow builders to start building for free and create gasless experiences, while builder grants reward individuals who positively impact Base and provide them with resources for future development. This strategic investment aligns with Coinbase’s vision of leveraging Base as a gateway to the crypto market for its vast user base of over 110 million users.

In a related development, Coinbase’s CEO, Brian Armstrong, has initiated a soulbound NFT airdrop on Base, potentially paving the way for a Base token airdrop in the future.

While the rally of meme coins on Solana has slowed down, meme tokens on Base have experienced significant growth. Tokens like TOSHI and Briun Armstrong (BRIUN) have recorded substantial gains in recent days. Analyst Miles Deutscher suggests that tracking token trading volumes and holder counts can uncover promising opportunities within this space. Notably, Toshi Base stands out due to its robust community and status as a first mover in the meme token arena.

With its rapid growth and increasing popularity, Coinbase’s Base has emerged as the new hub for meme tokens. The Ethereum Dencun upgrade has played a significant role in attracting developers and traders back to Ethereum, making Base a strong contender in the meme token market. As Coinbase continues to invest in Base’s development, the platform aims to become the go-to gateway for its extensive user base, ultimately shaping the future of the crypto market.