The increasing investor interest in memecoins on Base could see the network overthrow Solana to become the new home of memes.
Coinbase’s Base has continued its fine form after the network’s total value locked (TVL) surpassed $2 billion on March 23.
The surge in activity on Base peaked after the Dencun effect, which saw transaction charges on the network reduce to almost nothing. Notably, the TVL on Base doubled in less than a month, from $1 billion to about $2.13 million, with the introduction of the blobs as one of the major driving forces.
As memecoin drove Solana’s TVL and DEX volumes to new highs, Base is also enjoying increased investor traction, with growing speculations of a memecoin frenzy driving interest. Commentators now suggest that Base could soon overtake the “Ethereum killer” to become the new home of memecoins.
Dencum Effect
Before the Dencum upgrade on March 13, activity on the Base network was literally flat. However, a drastic reduction in transaction fees has spurred investor interest in the Ethereum Layer 2 network.
Although Base’s transaction fees were relatively low compared to other Ethereum L2s, the over 88% decrement made transacting on the network more appealing to investors. Also, Base’s smart wallet functionality has made users see the network as a good alternative to the heated memecoin market on the Solana blockchain.
Coinbase announced it was building a native smart wallet feature on the Base network, allowing its 100 million registered users to trade on-chain without using seedphrases and private keys.
Memecoin Shift
The excitement about meme coins, which saw a second phase in early March, mostly happens on the Ethereum and Solana blockchains. Many new meme tokens like dogwifhat (WIF), Book of Meme (BOME), and Slerf (SLERF) have become popular during this time.
However, conducive macro factors are seeing investors attracted to the Base network. Former Wall Street macro trader Wizard of SoHo alleged that the connection between Coinbase and the Base network would see tokens listed on the exchange.
“There are going to be several billion-dollar memecoins on base that will get an easy listing on Coinbase and goto all the normies,” he stated in an X post.
In the past few days, memecoins based on Base have grown tremendously. Tokens like TOSHI and Degen (DEGEN), among others, have witnessed significant increases in value, indicating a renewed interest in meme coins within the Base ecosystem. With more interest likely, early investors in tokens on the network would benefit from the incoming cash influx.
