Base, the Ethereum Layer 2 network supported by Coinbase, has officially claimed the crown from Solana in daily token creation, according to recent data from Dune Analytics. This impressive shift is largely influenced by Zora, a fast-growing on-chain social network that transforms every post into a financial asset. This development follows the July rebranding of the Base App, which has now evolved into a consumer-oriented platform for on-chain social finance, commonly referred to as “SocialFi.”
The revamped app seamlessly integrates social feeds with token minting capabilities, allowing users to create tokens directly linked to their content. This innovative approach has propelled the ZORA token—operating on the Base network—to astronomical heights, seeing a staggering 440% increase in value during its launch week. Although the token has encountered some turbulence, experiencing a nearly 14% dip over the past week, it remains an impressive 500% up over the last month, reflecting the dynamic nature of the crypto market.
Since the relaunch of the Base App, Zora-related activity has surged to unprecedented levels, as evidenced by:
- Over 1.6 million Creator Coins minted
- Nearly 3 million unique traders
- Total trading volume exceeding $470 million
These statistics, as indicated by Dune, highlight the popularity of the Creator Coin model employed by Zora, featuring a fixed supply of 1 billion coins, with half allocated to the creator over five years and the remainder available on the market. Each transaction sends 1% of the $ZORA back to the content creator, establishing a direct link between user engagement and earnings.
Despite the apparent ease of token creation, reminiscent of traditional social media’s instant tradability, the model isn’t without its detractors. Research from TK suggests that while Zora shows strong momentum with new users and content tokens, the predominant behavior among users appears to be trading-centric, hinting at a potential short-term speculative focus.
The emergence of platforms like Base and Zora indicates a significant turning point in the crypto landscape, merging social interaction with financial opportunities. As the space continues to evolve, it remains essential for participants to consider the implications of such innovations and their potential impact on the broader crypto ecosystem.