Since the start of April, the creation of new tokens has surged, surpassing a million in total, with over 370,000 appearing on Ethereum, largely attributed to activity on Coinbase's Layer 2 network, Base.
Solana leads this trend with the creation of more than 640,000 new tokens, primarily consisting of meme coins.
Increased User Engagement on Base Coinbase director Conor Grogan shared data indicating that 372,642 new tokens have been launched on the Ethereum network since April 1, with 88% of them deployed on Coinbase's Layer 2 blockchain, Base.
This surge in activity on the Layer 2 network is driven by users migrating to the low-cost platform to create new meme coins. Remarkably, the number of tokens created on Ethereum during this period is double the total launched between 2015 and 2023.
Base has witnessed a resurgence in user activity this quarter, particularly noted in Franklin Templeton's recent report highlighting substantial traction gained from SocialFi applications like Friend.Tech. The report identifies several leading crypto-based social apps being developed on the Layer 2 network.
Base currently processes around 46% of all SocialFi transactions, making this sector pivotal for the network's adoption and growth, according to statistics from the asset manager.
Data from L2BEAT reveals that Base ranks as the third largest Ethereum Layer 2 network, boasting $5.48 billion in total value locked (TVL).
New user adoption on Base has steadily increased since the start of the year, gaining significant traction post-March. Dune Analytics data shows a surge in daily user count on the network, rising from 4.6 million in March to 8.9 million in May, indicating a 92.86% increase in just two months.
Solana's Meme Coin SurgeMeme coins represent the majority of the 643,227 new tokens created on Solana during the same period. Some notable ones include dogwifhat (WIF), Bonk (BONK), and Slerf (SLERF), among others.
Apart from the hype surrounding spot Bitcoin ETFs, meme coin frenzy has played a significant role in the current market cycle. Many industry observers have labeled this cycle as "bizarre." However, most of these tokens have either collapsed or become worthless, with meme coin scams prevalent not only on Solana but also on Base.
Recently, CryptoQuant co-founder Ki Young Ju cautioned against the meme coin hype, highlighting how these assets often overshadow the efforts of legitimate teams working on products that could drive industry advancement.
May 2024, Cryptoniteuae