• Base from Coinbase is about to pass Blast to gain the third spot among Ethereum L2.
• DEX volume on Base has more than doubled during the past month, among numerous other indicators.
• More than 100 million Coinbase customers might be added to Base’s meme ecology using smart wallet.

With the launch of the Ethereum Dencun upgrade on March 13, Coinbase’s Layer 2 chain Base experienced a spike in its on-chain metrics. The latest update reduced Layer 2 chain fees by a factor of ten. The advantages of the Dencun update, in addition to its intelligent wallet features, have drawn Base’s meme coin craze away from Solana.

The money is in meme coins.

The Ethereum and Solana blockchains are the only places where the meme coin craze that started in early March has spread. Popular meme tokens like Dogfight (WIF), Book of Meme (BOME), and Slerf (SLERF) were born out of this meme coin rally.

• Dogwifhat experienced a 358% increase from February 28 to March 15. At the moment, WIF’s market capitalization is approximately $2.78 billion.
• Similarly, the price of BOME increased significantly from $0.001 to an all-time high of $0.26 on March 16.
• Despite fierce opposition, Slerf meme currency prevailed, and it is now worth $0.61 after rising 16% over the previous day.

Why Base could breed next meme coin cycle

Developers favored Solana over Ethereum in launching meme tokens due to its low fee structure, which ensures easy trading and cheap token presales. The recent Ethereum Dencun upgrade has decreased the gas fee costs on Ethereum Layer 2s by a significant amount. The Dencun upgrade promised a 10x reduction and has been delivered.

The chart shows how gas fees have dramatically reduced since the Dencun upgrade on March 13. The low fees have attracted developers and traders back to the blockchain, where the meme rush began.

Coinbase’s Base is one L2 that has significantly profited from the fee reduction. Due to the considerable decrease in Base fees with the Dencun update, consumers are more drawn to the L2. From about $405 million in February to over $884.4 million on March 25, it has more than doubled its TVL in the last month, coming up just short of another L2, Blast. It has crossed over $2 billion in TVL, according to a recent tweet from Base Daily, an X account that provides daily updates regarding Base.

DeFillama claims that the volume of DEX, apps, and daily average users on its site have all increased significantly. The primary reason for this increase in recent times is Bases’s smart wallet functionality, which makes it simple for users to build wallets without having to deal with lengthy keywords. Additionally, the intelligent wallet offers wallet recovery alternatives, potentially attracting over 100 million Coinbase users to its meme network.

Because of the simple onboarding process for new users and the affordable free plan enabled by the Dencun update, Base may become the hub for the upcoming meme coin frenzy.

The Base’s meme tokens are increasing.

Meme tokens on Base have surged in value, with names like TOSHI and Brian Armstrong (BRIUN), among many others, posting significant gains in the last three days, whereas the rally of meme currencies on Solana has slowed down.

It is speculated that more meme tokens will rush Coinbase’s ecosystem in the hopes of a speedy listing on the biggest cryptocurrency exchange in the US, given Coinbase’s affiliation with the Base ecosystem.

A lot of people in the cryptocurrency community have speculated that Coinbase CEO Brian Armstrong’s soulbound NFT airdrop on Base could lead to a possible Base token airdrop.

Meme currencies are highly erratic and vulnerable to rug pulls, in which the team behind the project or its creator removes liquidity, effectively wiping out a particular token’s value. Because most meme coins expire in a matter of weeks, investors should proceed with care. Early investors may receive money from those who survive, which changes their lives.