Franklin Templeton: Base Dominates SocialFi with Friend.Tech Boost

Asset manager and spot bitcoin exchange-traded fund issuer Franklin Templeton has highlighted the success of the Coinbase-incubated Ethereum Layer 2 network Base in the emerging sector of SocialFi. According to a report released by Franklin Templeton, Base has been a standout performer in SocialFi, accounting for approximately 46% of all transactions in the niche.

The surge in activity on Base has been attributed to applications such as Friend.Tech, which recently launched its native FRIEND token and version 2 rollout. Friend.Tech, known for its unique invite-only networking service that utilizes social tokens called “keys,” has gained significant traction in the space.

With a total value locked of around $14 million, Friend.Tech has seen its FRIEND token trading at $2.23, with a market capitalization of $208 million. The combination of Base-based applications and integration with Coinbase’s user base positions the network as a leader in the Ethereum Layer 2 sector, poised to capture a substantial share of SocialFi activity.

Base’s dominance is further underscored by its revenue and transaction metrics, with the network generating over 60% of total Layer 2 revenue on a recent Thursday. Built on Optimism’s OP Stack, Base boasts a high daily transaction count, surpassing other optimistic rollups like Arbitrum.

In addition to SocialFi, Base’s activity has also been fueled by memecoins and an increase in the supply of Circle’s USDC stablecoin on the network. Memecoins like BRETT, DEGEN, and TOSHI have seen significant market capitalizations, although their prices have experienced volatility in line with the broader cryptocurrency market.

The surge in USDC supply on Base can be attributed to Coinbase’s decision to offer free transfers of USDC on the Layer 2 using Coinbase Wallet. This move has led to a substantial increase in USDC supply on Base, reaching approximately 11% of the total supply held on Ethereum.

Overall, Franklin Templeton’s analysis underscores Base’s strong position in the Ethereum Layer 2 landscape, driven by its success in SocialFi, memecoins, and stablecoins. As the network continues to attract users and applications, it is poised to remain a key player in the evolving decentralized finance ecosystem.