A surge in investor interest in the Layer 2 network Base, developed by Coinbase on the OP Stack, has led to substantial growth in the network’s activity and total value locked (TVL). This uptick is largely fueled by the rising popularity of memecoins minted on the network, drawing attention to the platform’s potential as a hotspot for cryptocurrency enthusiasts. With Coinbase providing direct access, Base is swiftly becoming a go-to network for new users entering the crypto space.
Viral Memecoins Drive Up Trading Volume
In the realm of memecoins, assets such as TOSHI, TYBG, NORMIE, and BRETT have experienced an astronomical rise in value, with some prices soaring by as much as 1300 percent over the past week. This explosion in value has coincided with their trading volumes surpassing the billion-dollar mark, highlighting the frenzied trading activity on the Base network.
Adding to the trend, tokens like AERO and SEAM, linked to decentralized cryptocurrency projects, have also seen their prices jump by over 90 percent in the same timeframe, as per CoinGecko’s analytics.
Blockchain exploration data reveals that Base network’s transaction activity has markedly increased, with the daily average tripling from under 500,000 to over 1.5 million transactions. Wallet addresses have also seen a doubling, reaching 65,000 and showcasing the expanding engagement with the network.
This heightened network usage has generated substantial transaction fees, totaling $1.8 million in just 24 hours. Notably, these fees have outpaced those incurred prior to Ethereum‘s Dencun update, as observed by Optimism developer Michael Silberling.
Network Congestion Intensified by Trading Bots
The memecoin craze on Base has been further fueled by trading bots, which contribute to high fees and network congestion. These algorithms are designed to snap up tokens as soon as they are issued, leading to bottlenecks and an exacerbated congestion situation. The escalating activity reflects the broader community’s fascination with memecoins and underscores the urgency for scalable solutions to accommodate this growing demand without compromising network performance.