Coinbase's Base Layer-2 network has seen a surge in user activity, particularly in SocialFi applications. Base handles 46% of all SocialFi transactions, making it a prime category to expand the network's reach.
The integration of SocialFi applications, particularly the Friend.Tech platform, into Base has spurred an increase in user activity, CryptoPotato reported.
According to Franklin Templeton, Base has become a key player in the SocialFi space, capturing a significant portion of transactions in the category.
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Friend.Tech's innovative platform for integrating financial relationships and remittances into social interactions has garnered a lot of attention. In particular, the FRIEND platform's own token giveaway, which took place on May 3, increased user engagement.
On Friend.Tech, users can purchase "keys" or "shares" from influencers to access their chatrooms. The move resulted in Friend.Tech amassing a significant user base and the FRIEND token reaching a market value of $200 million.
In addition to SocialFi's success, Base saw significant growth in USDC offerings on its network, exceeding $2.5 billion. This growth was driven by Coinbase's strategic decision to offer free USDC transfers to Base through the Coinbase Wallet in December 2023, in order to strengthen the ecosystem and provide a seamless transaction experience for its users.
According to Franklin Templeton, Base's reach has now reached approximately 46% of all SocialFi transactions. This position reflects the network's dominance and contributes to its growing influence in the Ethereum Layer-2 sector.
Despite the competition, Base's ETH deposit growth is outpacing its rivals, with more than 6,500 ETH deposits earlier this week. In comparison, Arbitrum and Optimism had much lower deposit growth.
The support of Coinbase, the largest publicly traded cryptocurrency exchange in the US, has been critical to Base's success, despite the legal challenges that have accompanied the company's recent activities. The SEC's case against Coinbase is still ongoing. The exchange has now filed an appeal, arguing that the Howey test should not be applied to digital assets and that normal securities rules should not be extended to cryptocurrencies.
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