Memecoins fuel growth on Ethereum's layer-2 network, challenging traditional crypto hubs and attracting new investors.
In recent weeks, the cryptocurrency community has witnessed a remarkable surge in the total value locked (TVL) on Base, an Ethereum layer-2 network. This surge has seen the TVL double from $1 billion to an impressive $2.13 billion in less than a month. Such exponential growth has not only caught the attention of investors and traders but has also sparked discussions among industry pundits regarding the potential drivers behind this trend.
One of the most talked-about factors contributing to the growth of Base's TVL is the rising interest in memecoins. Memecoins, which started as internet jokes but have since evolved into a significant cryptocurrency phenomenon, are believed to be a key factor in driving adoption on the Base platform. Industry experts are now speculating that Base could emerge as a new hub for memecoins, challenging other networks like Solana, which previously saw a memecoin craze.
Memecoins such as Degen and Base God are beginning to gain traction on Base, although they still fall short of the popularity enjoyed by more established memecoins like Dogecoin and Shiba Inu. This growing interest in memecoins on Base is further supported by Coinbase's development of a native smart contract wallet, which could potentially make trading more accessible to its 100 million registered users.
The doubling of Base's TVL from $1 billion to $2 billion in just 25 days is a significant milestone, especially considering it took 203 days to reach the first billion. This rapid increase in TVL is a strong indicator of the growing interest and adoption of memecoins within the Base network. Total value locked is a crucial metric in the crypto space, as it represents the overall value of assets deposited in a blockchain network's smart contracts. A higher TVL suggests greater trust and utility in the network's ecosystem, making Base's recent achievements particularly noteworthy.
The surge in Base's TVL, driven by the anticipation and adoption of memecoins, suggests a shifting landscape in the cryptocurrency world. As Base continues to attract attention and investment, it could indeed become a significant player in the memecoin market, potentially reshaping how these digital assets are traded and perceived. Moreover, the development of user-friendly trading tools, such as Coinbase's smart contract wallet, could further fuel adoption, making cryptocurrency trading more accessible to a broader audience.
