Memecoins: The Gateway to Mass Web3 Adoption

Base creator Jesse Pollak believes memes are the gateway to onboarding millions of users to his Coinbase-adjacent layer-2 network. Pollak emphasizes memes' significance in the on-chain economy and anticipates their proliferation in bringing people into the blockchain space. Since the Ethereum Dencun upgrade, Base TVL surged 250%, highlighting the growth of memecoins and transactions on the network.

Memecoins: The Gatekeepers to Web3 Mass Adoption

Amidst the meteoric rise of decentralized finance (DeFi) and the advent of layer-2 networks, there exists a burgeoning phenomenon that is captivating the attention of industry leaders and users alike: the ubiquitous presence of memes. In the realm of blockchain technology, memes are proving to be more than just a passing fad—they are emerging as a potent force that could pave the path for mainstream adoption.

At the forefront of this meme-driven revolution is Jesse Pollak, the visionary behind Base, a Coinbase-affiliated layer-2 network that has witnessed an unprecedented surge in its total value locked (TVL) since its inception in March. Pollak firmly believes that memes possess the power to unlock the gateway to Web3 for millions of users, effectively ushering in a new era of on-chain engagement.

"Memes are an integral part of the on-chain economy," Pollak declared during a recent memecoin hackathon in New York City. "Their proliferation has the potential to serve as a bridge, connecting the world to the transformative power of blockchain."

Pollak's conviction in the onboarding potential of memes is rooted in the tangible results witnessed by Base. Since the implementation of Ethereum's Dencun upgrade in mid-March, which significantly reduced fees on layer-2 networks, Base has experienced a remarkable increase in memecoin activity and transactions. This surge has fueled a meteoric rise in TVL, surging by an astounding 250% since the beginning of March and reaching an all-time high of $1.61 billion on April 21.

The influx of users drawn to Base's memecoin ecosystem has not been driven solely by speculative motives. Rather, meme creators on the platform have demonstrated an unmatched ability to cultivate innovative onboarding strategies that effectively introduce new individuals to the world of cryptocurrency.

Pollak enthusiastically described the phenomenon: "We are witnessing an explosion of creativity, with countless experiments being conducted to find novel ways to introduce our culture to a wider audience."

His unwavering belief in the transformative power of memes is rooted in the conviction that they will play a pivotal role in bringing millions more users to Base in the years to come. Memes, he asserted, are poised to emerge as one of the most influential drivers of onboarding, continuously captivating and engaging new individuals through imaginative and accessible channels.

Pollak's vision extends beyond the financial realm, encompassing a broader cultural shift: "Hundreds of teams and subcultures are evolving, creating, and infusing our economy and capital markets with their unique energy and perspectives."

BRETT, the most popular memecoin on Base at present, epitomizes the transformative potential of this emerging trend. With a market capitalization of $567 million, BRETT has experienced an eye-popping price explosion of 7,780% since early March. Other notable memecoins thriving on the Coinbase blockchain include DEGEN ($435 million market cap) and TOSHI ($185 million market cap).

The surge in memecoin activity on Base is not an isolated phenomenon. Blockchains like Solana and Base have become magnets for memecoin enthusiasts due to their high throughput and minimal transaction fees. However, it is imperative to note that this burgeoning ecosystem is not without its challenges.

A recent investigation conducted by Cointelegraph revealed that approximately 16.7% of newly launched Base memecoins were scams, with over 90% exhibiting vulnerabilities. These findings underscore the importance of vigilance and due diligence for users navigating this rapidly evolving landscape.

Despite these concerns, the potential benefits of memecoins cannot be overstated. By harnessing the power of cultural resonance and community building, memes have the potential to make Web3 accessible and engaging for the masses. As the blockchain industry continues to mature, it will be fascinating to witness the role that memes play in shaping its future.