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Franklin Templeton, a leading asset management firm with trillions in assets under management, has highlighted Base, an Ethereum Layer 2 network developed by Coinbase, as a key player in the Social Finance (SocialFi) sector, particularly through its main application, Friend.tech.
With its cutting-edge strategies and collaborative partnerships, Base is set to secure a considerable portion of SocialFi activities, marking a significant period referred to as “Base Season” by Franklin Templeton.
Base Driving A Major Portion Of SocialFi with Friend.tech
A report from Franklin Templeton indicates that a notable 46% of transactions in the SocialFi space are currently processed via Base, underscoring its leading position and expanding impact in this Layer 2 arena. Friend.Tech stands out as a prominent application within the Base ecosystem, utilizing the platform to transform social interactions and content monetization.
“[It is] positioning itself well to capture a material share of SocialFi activity and remain a leader in the Ethereum L2 sector going forward,” Franklin Templeton noted in the report.
Recent accomplishments of Friend.Tech, including the rollout of its second version and the FRIEND token airdrop, highlight Base’s crucial role in fostering SocialFi advancements. With a significant market capitalization of $200 million, the FRIEND token reflects the strong community involvement and investor trust cultivated within Base’s ecosystem.
It’s Base Season pic.twitter.com/kAhcwkpreE
— Franklin Templeton Digital Assets (@FTI_DA) May 9, 2024
A key characteristic of Base is its implementation of “optimistic rollups,” a technology that speeds up transactions and lowers costs by aggregating them off the Ethereum mainnet. This method allows Base to uphold Ethereum’s stringent security measures while greatly improving transaction throughput and efficiency.
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In comparison to competitors like Arbitrum and Optimism, Base has witnessed extraordinary growth, with its total value locked (TVL) surging by over 630% year-to-date, reaching $5.45 billion. As reported by L2beat, this impressive increase in TVL cements Base’s status as the third-largest Ethereum Layer 2 network, following Arbitrum One and OP Mainnet.
Importantly, Base’s achievements can be partially credited to its close relationship with Coinbase, which acts as the exclusive sequencer for the network. While Coinbase retains full control over Base, plans for gradual decentralization are underway, ensuring the platform’s long-term viability and robustness.
Base Expansion Is Impacting Other Layers On Base
Degen Chain, a layer-3 blockchain built on the Base network, has recently gained significant momentum, achieving nearly $100 million in transaction volumes within the first 24 hours of its launch. Despite being operational for only four days, the network has logged over 272,000 unique transactions and the establishment of thousands of contracts and tokens, although many are linked to scams or rug pulls.
As a layer-3 blockchain specifically designed for the DEGEN token, Degen Chain employs layer-2 protocols to enable quicker transactions and specialized functionalities such as payments, gaming transactions, and community rewards. While DEGEN functions as the native gas token for transaction fees within the chain, tokens like Degen Swap (DSWAP) and Degen Easter Eggs (DEE) have also surfaced, with valuations reaching millions of dollars, primarily driven by speculative trading.
Nonetheless, the swift expansion of Degen Chain has ignited discussions within the crypto community regarding the necessity and potential downsides of layer-3 networks. Some argue that these networks might siphon value away from mainnets like Ethereum, while others, including Polygon CEO Marc Boiron, express mixed views on the matter. Boiron stated in a tweet,
“I’ll say the quiet part out loud: L3s exist only to take value away from Ethereum and onto the L2s on which the L3s are built. You do not need L3s to scale.”
However, he also asserts that they provide distinct functionalities and value propositions that enhance existing layer-2 solutions.
The post Franklin Templeton Praises Base Network in SocialFi, Cites Success with Friend.Tech appeared first on Cryptonews.
