As a seasoned crypto investor with over a decade of experience in this dynamic market, I’ve witnessed numerous trends come and go. The recent surge in new token creation on Ethereum’s Layer 2 network, Base, and Solana has piqued my interest once again.
Starting from early April, over a million fresh tokens have emerged, with approximately 370,000 of them joining Ethereum‘s blockchain. This surge is primarily due to the bustling activity on Coinbase’s Layer 2 solution, named Base.
Solana leads with the creation of over 640,000 new tokens, primarily meme coins.
Base Sees Increased User Activity
Based on information provided by Coinbase director Conor Grogan, approximately 372,642 new tokens have been introduced on the Ethereum network since April 1st. Around 88% of these tokens are hosted on Coinbase’s Layer 2 blockchain, named Base.
The recent increase in activity on Layer 2 networks can be attributed to a large influx of users joining the low-cost platform to generate new meme coins. Remarkably, the number of tokens minted on Ethereum during this brief timeframe surpasses the combined total launched from 2015 to 2023.
As a researcher, I’ve noticed an uptick in user activity for Base this quarter. This trend is reflected in Franklin Templeton’s latest report, which brings attention to the significant strides made by SocialFi applications such as Friend.Tech towards the adoption of blockchain technology. The report reveals that many prominent crypto-social applications are now being developed on Layer 2 networks.
As a researcher examining the data, I’ve discovered that Base handles approximately 46% of all SocialFi transactions. This sector holds significant importance for the network’s expansion and acceptance based on the asset manager’s reports.
The findings from L2BEAT’s data unveiled that at present, Base ranks third among Ethereum Layer 2 networks with a total of $5.48 billion worth of assets secured within it.
The number of new users on Base has been steadily rising since the start of the year, with significant growth occurring after March. According to Dune Analytics, the daily user count on the network jumped from 4.6 million in March to 8.9 million in May, representing a remarkable 92.86% surge over the course of two months.
Solana’s Meme Coin Explosion
As a crypto investor, I’ve noticed an intriguing trend on the Solana blockchain. Out of the 643,227 new tokens minted during this period, a significant number were meme coins. Among these, some have generated impressive returns: dogwifhat (WIF), Bonk (BONK), and Slerf (SLERF) are just a few examples that come to mind.
As a crypto investor, I’ve noticed that apart from the excitement surrounding Bitcoin ETFs, meme coins have significantly influenced the current market trend. Some industry insiders have even labeled this cycle as “bizarre.” However, the reality is that many of these tokens have either crashed or turned out to be worthless. Meme coin scams are rampant not only on Solana but also on other platforms such as Base.
Recently, Ki Young Ju, a co-founder of CryptoQuant, issued a cautionary note against the hype surrounding meme coins. He stressed that the attention given to these assets can distract from the significant work being done by dedicated teams developing genuine products that could drive advancements in the industry.
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2024-05-16 07:17