Franklin Templeton, a powerhouse asset manager overseeing trillions in assets, has recently turned its attention to the burgeoning field of Social Finance (SocialFi). In a groundbreaking report, Franklin Templeton highlights Base, an Ethereum Layer 2 (L2) network incubated by Coinbase, as a frontrunner in this exciting domain. The prime application within Base’s ecosystem, Friend.tech, plays a pivotal role in revolutionizing social interactions and content monetization.
Base: A Dominant Force in SocialFi
According to Franklin Templeton’s report, an impressive 46% of transactions within the SocialFi sector now flow through Base. This dominance underscores Base’s growing influence and strategic positioning. Friend.Tech, a standout application built on Base, leverages the platform to empower creators, allowing them to connect and monetize their content through “key” shares or “tokenized attention.” The recent launch of Friend.Tech’s second version and the FRIEND token airdrop further solidify Base’s role in driving SocialFi innovations.
Innovative Technology: Optimistic Rollups
One of Base’s distinguishing features is its utilization of “optimistic rollups”, a technology that accelerates transactions and reduces costs by batching them off the Ethereum mainnet. This approach maintains Ethereum’s rigorous security standards while significantly enhancing transaction throughput and efficiency. Unlike its counterparts like Arbitrum and Optimism, Base has experienced unprecedented growth, with its total value locked (TVL) skyrocketing by over 630% year-to-date, reaching an impressive $5.45 billion. Base now stands as the third-largest Ethereum Layer 2 network, trailing only behind Arbitrum One and OP Mainnet.
Coinbase’s Role and Gradual Decentralization
Base owes part of its success to its close affiliation with Coinbase, which serves as the sole sequencer of the network. While Coinbase currently maintains complete control over Base, plans for gradual decentralization are in motion. This ensures the platform’s long-term sustainability and resilience, allowing it to thrive as a leader in the Ethereum L2 sector.
Base Season: A Pivotal Moment
Franklin Templeton aptly terms this period as “Base Season.” With its innovative approach, strategic partnerships, and robust community engagement, Base is well-positioned to capture a material share of SocialFi activity. The FRIEND token, with a substantial market cap of $200 million, exemplifies the confidence investors have in Base’s ecosystem.
As Base continues to expand its reach and influence, it’s clear that SocialFi is no longer just a buzzword—it’s a transformative force shaping the future of decentralized finance.
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