Base Blockchain's Meme Coin Frenzy Hits $1B Trading Volume

Key Takeaway

• Base blockchain's transactions surged threefold to 1.5 million a day, driven by a meme coin frenzy, with funds locked rising to $1 billion.
• Token prices on Base, including TOSHI and TYBG, skyrocketed up to 1,300%, pushing cumulative trading volumes over $1 billion.
• High gas fees and network congestion were noted due to the popularity of meme coins and trading bots on the platform.

Base Blockchain Buzz

The Base blockchain, developed by Coinbase on the OP Stack, has recently witnessed a significant surge in activity and interest. Since its launch for developers in August, the network has seen its funds locked rise dramatically to nearly $1 billion from $450 million at the beginning of the month. Transactional activity has tripled, reaching over 1.5 million a day, and the number of unique addresses has doubled to 65,000 wallets. This uptick in activity is attributed to the direct access provided by Coinbase’s exchange and wallet applications, potentially positioning Base as a primary network for retail users.

Memecoin Mania

The frenzy around meme coins on the Base network has led to astonishing price surges, with tokens like toshi (TOSHI), thank you base god (TYBG), normie (NORMIE), and brett (BRETT) witnessing increases of up to 1,300% over the past week. Cumulative trading volumes for these tokens have crossed the $1 billion mark. This speculative activity has not only generated $1.8 million in network fees over the past 24 hours but has also driven social sentiment, with traders advocating for a capital shift to this burgeoning network. However, the popularity of meme coins has also led to high gas fees and network congestion, reminiscent of challenges faced by other networks during periods of high demand.

Ethereum's Fee Surge

Parallel to the Base blockchain's rise, the Ethereum network has experienced a significant increase in network fees, reaching a near two-year high of $193 million this week, a 78% increase from the previous week. This surge is largely driven by the speculative trading of Ethereum-based meme tokens, which have seen their prices more than double. The increased activity has also boosted trading volumes on decentralized exchanges (DEX) built on Ethereum by 40% to $20 billion. Despite the benefits to ether (ETH) holders from the token burning scheme introduced post-Merge, the high transaction costs have rendered the blockchain "unusable" for many, with average gas fees hitting $28 this week.

Memecoin Trading Peaks

The digital asset market's memecoin frenzy shows no signs of abating, with trading volumes for these highly speculative tokens reaching levels last seen before the burst of the crypto bubble in 2021. Memecoins like Dogwifhat and Pepe have outperformed even Bitcoin in terms of gains, with the total market value of the memecoin sector hitting more than $60 billion. Despite the lack of traditional fundamentals supporting these tokens, the community's enthusiasm and speculative interest continue to drive their popularity and market value.

Street Views

• Michael Silberling, Optimism Developer (Neutral on Base blockchain):

  "The immense popularity of meme coins on Base has resulted in high gas fees, which exceeded the fees paid by users before the Dencun upgrade."