“Base Season?” Coinbase L2 Earns Institutional Nod: Here’s Why

Coinbase-incubated Layer 2 Base gets the attention of trillion-dollar asset manager Franklin Templeton.

Coinbases Ceo Brian Armstrong day dreaming.
Created by Kornelija Poderskytė from DailyCoin
  • Coinbase-incubated Layer 2 Base has received recognition from Franklin Templeton.
  • The trillion-dollar asset manager has heralded the network’s strides in the SocialFi space.
  • The nod comes as the network records significant gains in several metrics outstripping market leaders Arbitrum and Optimism.

Base‘s notoriety is extending beyond degen circles.

Sponsored

In recent months, the Coinbase-incubated Ethereum Layer 2 has experienced a meteoric rise in several key metrics. This rise has now drawn the attention of $1.5 trillion asset manager Franklin Templeton. The firm has heralded the network’s potential, particularly in the SocialFi sector.

A SocialFi Homerun

In a Thursday, May 9, report, Franklin Templeton asserted that Base “has hit a homerun” in SocialFi. The firm noted this while citing data that the Ethereum Layer 2 accounted for 46% of the SocialFi market share, outstripping close rivals Polygon and BNB.

Base’s SocialFi landscape is dominated by Friend.Tech. The application, which allowed users to tokenize their social media accounts, was a hit sensation right out of the gate, gaining sign-ups from NBA stars and Y Combinator CEO Gary Tan. But, in recent months, the platform’s meteoric rise has taken a hit amid privacy, legal, security, and user experience concerns. Following a recent airdrop, however, the project appears to be experiencing a resurgence.

Franklin Templeton tipped the combination of Base’s support of leading SocialFi applications and Coinbase’s partnership to see the network maintain a key position in the SocialFi and Ethereum Layer 2 space in general.

Sponsored

The recent Franklin Templeton nod comes as Base is beginning to outstrip other Layer 2 networks in several key metrics.

Base Set to Sieze the Ethereum L2 Crown?

On Thursday, May 9, crypto analytics platform IntoTheBlock shared data that showed that this week, Base had led the Ethereum Layer 2 ecosystem in several key metrics, including active addresses, daily transactions, and ETH inflows. 

According to the data, the network boasted 548,000 active addresses compared to Optimism‘s 534,000 and Arbitrum‘s 528,000. At the same time, the network also recorded 2.48 million transactions compared to the 1.97 million recorded by Arbitrum and the 550,000 recorded by Optimism. Base also saw the most ETH net inflows with 5.81K ETH, far more than the 2.73K ETH recorded by Arbitrum and the 1.46K ETH net inflows to Optimism.

The recent strides come as the network has emerged as a favorite among investors following the Dencun upgrade.

On the Flipside 

  • Coinbase maintains that Base will have no native token.
  • Base’s success has also attracted bad actors. According to a recent Scam Sniffer report, thefts on the network increased 145% month on month in April 2024.

Why This Matters

The recent Franklin Templeton nod suggests that Base’s reach crosses over from crypto natives to institutions.

Read this for more on Coinbase’s Base:
Base Reaches Record Deployers, Surpasses Ethereum in Volume

Binance gets another hefty fine. Find out more:
Binance Fined $4.3M in Canada as Global Regulators Circle

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.