Coinbase's Base Blockchain Sees Spiking Activity, Locked Funds Led by Meme Coin Frenzy

The Base blockchain, developed by Coinbase, has witnessed a surge in activity and locked funds due to a frenzy led by meme coins. Daily transactional activity tripled to over 1.5 million, with distinct addresses doubling to 65,000 wallets. Locked funds soared to almost $1 billion from $450 million at the month's start. Meme coins like Toshi (TOSHI) and Thank You Base God (TYBG) witnessed value increases of up to 1,300% in a week, contributing to high gas fees and network congestion exacerbated by trading bots.

Surge in Activity and Locked Funds on Coinbase-Developed Base Blockchain

New York, March 13, 2023 - The Base blockchain, a platform developed by Coinbase on OP Stack, has experienced a surge in activity and locked funds due to a frenzy led by meme coins. Since its launch for developers in August, the Base blockchain has witnessed a notable rise in transactional activity, unique addresses, and locked funds.

Booming Meme Coin Phenomena

The recent surge has primarily been fueled by the popularity of meme coins, which have witnessed significant gains in value. Tokens such as Toshi (TOSHI), Thank You Base God (TYBG), Normie (NORMIE), and Brett (BRETT) have seen their prices skyrocket by up to 1,300% in the past week, with total trading volumes surpassing $1 billion.

Analysts attribute the rise of meme coins on Base to the platform's user-friendly interface, which enables direct access via Coinbase's exchange and wallet applications. This accessibility has positioned Base as a potential gateway for retail users to explore the blockchain space.

Technical Project Tokens Gain Traction

In addition to meme coins, technical project tokens such as Aerodrome's AERO and Seamless' SEAM have also gained traction on the Base blockchain. These tokens, associated with specific projects and use cases, have experienced price increases of up to 90% in the past week.

High Gas Fees and Network Congestion

The surge in activity has resulted in high gas fees on the Base blockchain, which are payments required to process transactions. These fees have surpassed those experienced prior to the recent Dencun upgrade. The majority of transactions are attributed to meme coin trading and the use of trading bots, which automatically purchase tokens within minutes of issuance. This activity has contributed to network congestion and delayed transactions.

Market Sentiment and Future Outlook

Social sentiment surrounding the Base blockchain has been positive, with traders advocating for a capital rotation towards the relatively new network. However, the sustainability of the current surge remains uncertain. Experts caution that the volatility associated with meme coins could lead to rapid price fluctuations and potential losses for investors.

While the Base blockchain has experienced a significant influx of activity, it remains to be seen whether this momentum can be maintained in the long term. The platform's ability to address network congestion issues and foster the development of meaningful technical projects will be crucial to its continued success.