Base TVL Soars Above $900M, Fueled by Meme Coin Craze and RWA Adoption

Base, Coinbase's Ethereum layer-2 protocol, has experienced a surge in Total Value Locked (TVL) by over 126% in the past month, reaching $913 million. The rise is attributed to the popularity of Base meme coins, which have seen a 400% increase in market cap, and the growth of real world assets (RWAs) on the platform. Nansen predicts that TVL could reach $1 billion this week.

Base TVL Surges Past $900 Million, Meme Coins and RWAs Drive Growth

By [Author's Name]

March 25, 2024

The Total Value Locked (TVL) on Base, an Ethereum Layer-2 protocol launched by Coinbase, has surged to a record high above $900 million, buoyed by a frenzy surrounding meme coins and the growing adoption of real-world assets (RWAs).

Meme Coins Fuel TVL Spike

In recent weeks, Solana-based meme coins have garnered significant attention, with projects like dogwifhat, Bonk Book of Meme, Slerf, and Myro posting impressive gains. However, Base meme coins have also experienced a substantial spike in the past 24 hours, with their combined market capitalization surging over 400% to nearly $1 billion.

Tokens such as Toshi (TOSHI), Degen (DEGEN), and Mochi (MOCHI) have witnessed a buying frenzy, each gaining more than 30% in the past day. Data analytics firm Nansen highlighted the surge in TVL, suggesting that it could potentially reach $1 billion this week.

Real-World Assets Emerge as Key Contributor

The growth of RWAs has also played a significant role in Base's emergence as a market force. The recent Dencun upgrade has facilitated low fees, driving increased interaction with decentralized applications (dApps) on the network. Investors are actively exploring RWA markets in search of undervalued gems.

On-chain data reveals a noticeable impact of RWA projects on Base TVL. Tangible RWA has experienced a 28% spike in TVL, while Cygnus Finance has seen a gain of nearly 6%. The overall rise in RWA tokens has propelled the sector's market capitalization to over $7 billion, with Ondo Finance, Polymesh, Pendle, and TokenFi among the top performers.

Other Narratives to Watch

Beyond meme coins and RWAs, two other narratives are expected to drive the ongoing bull cycle: artificial intelligence (AI) and Decentralized Physical Infrastructure Networks (DePINs). AI-related projects are attracting significant investment, as investors anticipate the transformative potential of machine learning and natural language processing in various industries. DePINs, which provide decentralized infrastructure for physical assets, are also gaining traction, offering opportunities for investors to participate in the tokenization of real-world assets.

Conclusion

The surge in Base TVL reflects the growing adoption of Layer-2 protocols and the enthusiasm surrounding meme coins and RWAs. As the bull cycle continues, investors should remain attentive to emerging narratives, such as AI and DePINs, which have the potential to drive further growth in the cryptocurrency market.