- Since the beginning of April, more than a million new tokens have been created, with over 370,000 appearing on Ethereum, owing to activity on Coinbase’s Layer 2 network, Base.
- Solana leads with the creation of over 640,000 new tokens, primarily meme coins.
- “This surge in activity on the Layer 2 network is driven by users flocking to the low-cost platform to create new meme coins,” according to Coinbase director Conor Grogan.
Coinbase’s Layer 2 network, Base, and Solana have seen explosive growth in token creation, signaling a shift in the crypto landscape.
Base Sees Increased User Activity
According to data shared by Coinbase director Conor Grogan, 372,642 new tokens have been launched on the Ethereum network alone since April 1, with 88% of them on Coinbase’s Layer 2 blockchain, Base. This surge in activity on the Layer 2 network is driven by users flocking to the low-cost platform to create new meme coins. Interestingly, the number of tokens created on Ethereum in this short period is double the total number launched between 2015 and 2023.
Significant Growth in SocialFi Transactions on Base
Base experienced a revival in user activity this quarter. This is evident in Franklin Templeton’s recent report which highlighted that the blockchain has gained substantial traction from SocialFi applications like Friend.Tech. It found that several leading crypto-based social applications are being built on the Layer 2 network. In fact, Base processes around 46% of all SocialFi transactions, making this sector vital for the network’s adoption and growth, according to the asset manager’s statistics.
Solana’s Meme Coin Explosion
Meme coins made up the majority of the 643,227 new tokens created on Solana during the same period. Some of them that have posted massive gains are dogwifhat (WIF), Bonk (BONK), and Slerf (SLERF), among others. Besides spot Bitcoin ETF hype, meme coin mania has played a crucial role in the current market cycle. Many industry players have touted this cycle as “bizarre” as a result. However, most of these tokens have since collapsed or become worthless, with meme coin scams rife not just on Solana but also on Base.
Conclusion
The recent surge in token creation on platforms like Base and Solana highlights a dynamic shift in the cryptocurrency landscape, driven largely by the popularity of meme coins. While this trend offers new opportunities, it also comes with significant risks, as highlighted by industry experts.
