Memecoins On Base Are Driving Network Growth: Report

Key Points:

• Memecoin frenzy propels Base, Coinbase’s blockchain, past $1 billion in activity.
• Memecoin interest may benefit Coinbase despite criticism.
• With $2 million daily fees, Base’s expansion could significantly benefit Coinbase.

Memecoins on Base have driven its activity beyond $1 billion. Despite criticism, this could benefit Coinbase if it expands beyond memecoins.

The memecoin frenzy has taken over Base, a blockchain launched by Coinbase Global Inc. aimed at being the cornerstone of its foray into decentralized finance and nonfungible tokens.

The Explosion of Memecoins On Base

Base’s activity has surged, with cryptocurrencies sent to the blockchain exceeding $1 billion.

Memecoins, speculative tokens not usually available on Coinbase’s exchange, are luring traders to the blockchain. Two of the most traded tokens are ANIME and DEGEN, both memecoins.

Coinbase introduced Base as a “bridge” between its users and the broader crypto world, including DeFi, blockchain-based games, and NFTs. However, the memecoin craze underlines that online casinos remain a significant use case for crypto.

Ethereum Upgrade Dencun Boosts Base’s Growth

A recent Ethereum software upgrade, Dencun, has spurred Base’s growth by significantly reducing trading costs on Layer 2 blockchains, making Base more competitive. Base was prepared for Dencun from day one, which brought average fees down from around 10 cents to 1 cent or less.

Coinbase’s Base aims to onboard the next billion users and is buoyed by the recent surge in activity. However, the influx of memecoins and the ensuing frenzy has invited criticism towards Coinbase.

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Coinbase’s Base Attracts Criticism and Praise

Despite this, analysts suggest that interest in memecoins could be beneficial for Coinbase, possibly overshadowing any critique, as per Bloomberg.

Base is already generating an estimated $2 million in daily fees. If Base expands beyond memecoins, it could be a significant win for Coinbase if it emerges as one of the most widely used chains.