Coinbase’s Layer 2 solution, Base, has surpassed $2 billion in Total Value Locked (TVL), marking a 43.61% surge over the past week.
This milestone reflects the growing traction and interest in this network, particularly focusing on meme coins and airdrops.
Coinbase’s Base Network on the Rise
Base, engineered on the Optimism tech stack, has been pivotal in scaling Ethereum by enhancing transaction speed and reducing costs, all while maintaining the robust security of the Ethereum mainnet. The success of Base can largely be attributed to its parent company, Coinbase.
This is a behemoth cryptocurrency exchange with a valuation surpassing $60 billion. Coinbase’s strategic positioning as the custodian for 90% of US spot Bitcoin exchange-traded funds (ETFs) and its alliance with giants like Blackrock and Circle have significantly contributed to Base’s momentum.
Indeed, Jesse Pollak, the architect behind Base, highlighted that a substantial portion of Coinbase’s revenue is funneled into Base’s development.
“We are ramping up gas grants to let builders get started building for free and build gasless experiences, [as well as] builder grants to reward folks who make a positive impact on base and give them resources to build the next thing. Gas grants will be upfront, with path to scaling. Builder grants will be primarily retroactive because we’ve observed that creates aligned incentives and a strong builder culture,” Pollak said.
This strategic move reflects Coinbase’s vision of leveraging Base as a gateway for over 110 million users into the crypto market. The platform’s integration with Coinbase’s expansive user base provides a fertile ground for user acquisition, a common challenge for new blockchains.
Read more: Coinbase Review 2024: The Best Crypto Exchange for Beginners?
Base Network Users. Source: Dune
For this reason, this strategy has led to an unprecedented uptick in Base’s adoption. In March, daily new users hit 800,000, revenue climbed from $18 million to $28 million, and daily transactions soared from 500,000 to 2 million.
This surge is partially attributed to the Ethereum Dencun upgrade. The implementation of EIP-4844 drastically reduced network fees, making Base a formidable competitor for high-frequency trading.
Base Meme Coins and Airdrops to Watch
The momentum around Base suggests a growing interest in meme coins and airdrops. With the ecosystem still in its infancy, the potential for discovery and investment in meme coins is vast.
According to analyst Miles Deutscher, a methodical approach involving the tracking of token trading volumes and holder counts can unveil promising opportunities within this space. Toshi Base, for instance, is a meme coin that stands due to its strong community and its position as a first mover.
“Those who follow my content know I’m a proponent of following the leader when it comes to narrative trading, in this case TOSHI is the leading meme on Base,” Deutscher emphasized.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
Protocols Running on Base. Source: Gargoyle
Moreover, the anticipation of new protocols launching on Base and the potential for ecosystem airdrops presents a lucrative prospect for users and investors.
Influencer Gargoyle pointed out that the most profitable on Base may have a good chance of launching an airdrop. These include bridges like Across and Stargate, decentralized exchanges like ODOS and Aerodrome, and lending protocols like Moonwell and Seamless.
Although Base has no immediate plans for a native token, history suggests anything is possible. With opportunities abounding in meme coins and airdrops, Base appears poised for further expansion.