Coinbase's BASE Layer 2 Chain Sees Transaction Surge Amidst Meme Coin Craze

BASE-based meme coins, including Degen, Brett, All Your Base, Based Shiba Inu, and Broge, surged in value this week, posting double-digit gains. As Coinbase's Layer 2 chain, BASE, experienced a record high in daily transactions, analysts see a trend towards these meme coins as a new investment category for NFT holders.

Coinbase's BASE Layer 2 Chain Witnesses Surge in Transactions Amid Meme Coin Frenzy

In a remarkable development, Coinbase's Layer 2 chain, BASE, has experienced a meteoric rise in daily transactions, reaching a new all-time high of 2.38 million on Saturday. This surge has been primarily fueled by the burgeoning popularity of BASE-based meme coins, which have garnered significant interest from investors and traders alike.

The rapid growth of BASE's daily transactions has been accompanied by an influx of capital into its ecosystem, resulting in a total value locked (TVL) of an impressive $1.166 billion as of Monday. This influx has been largely attributed to the allure of meme coins, which have generated substantial weekly gains.

BASE-Based Meme Coins Fuel TVL Surge and Transaction Volume

Top BASE-based meme coins, including Degen (DEGEN), Brett (BRETT), All Your Base (AYB), Based Shiba Inu (BSHIB), and Broge (BROGE), have witnessed double-digit weekly gains of up to 200%, according to data from CoinGecko. This surge in popularity has diverted capital from Solana's decentralized exchanges, which have seen a decline in trading volume and network usage over the past week.

Analysts Identify BASE-Based Meme Coins as Emerging Investment Destination

Cryptocurrency analysts have identified BASE-based meme coins as a distinct investment category that is attracting a growing number of NFT holders. As the meme coin frenzy intensifies, capital rotation is likely to continue, potentially extending gains for these tokens.

NFT Holders Rotate Capital into Meme Coins and Layer 2 Chains

The shift towards BASE-based meme coins is indicative of a broader trend in the cryptocurrency market. NFT holders are increasingly diversifying their portfolios, rotating capital into different market segments.

According to NFT expert and influencer X (@punk9059), the "once-was NFT community" has diversified into various branches, including meme coins, DEGEN coins, Ordinals and Bitcoin, and Farming Blast. This diversification highlights the fragmentation of the NFT community as investors seek new opportunities.

Conclusion

The surge in transactions and TVL on Coinbase's BASE Layer 2 chain is a testament to the growing popularity of BASE-based meme coins. As the meme coin frenzy continues, analysts anticipate further capital rotation into this new investment category, potentially driving further gains for these tokens.