🔵Base Surpasses Optimism, Arbitrum. Here's How
GM Readers!📪 It's BitDegree Insider, and let’s catch this wave.
🔵Base Drops That Bass - Success Analysis
👌Selected Meme of The Day
BASE SURPASSES OPTIMISM & ARBITRUM. HOW?
Arbitrum and Optimism have consistently led the Layer-2 network segment for the past year.
However, recently the number of daily transactions on Base reached a new peak - over 900,000, which is almost twice as much as in Arbitrum and Optimism.
Primarily, this happened due to a new hyped application on the Base network — Friend.tech.
To give you an idea of the scale: the Friend.tech app has surpassed market leaders Uniswap, MakerDAO, and even Bitcoin and Tron blockchains in terms of fees and revenue.
In short, the essence of the app is that each user of the platform can issue their own shares, or you can buy "shares" of various Twitter influencers and speculate on their price.
These are not tokens; their issuance and accounting are handled on the Friend.tech servers.
This has led to Friend.tech transforming into an enormous Ethereum profit engine with the participation of NBA Players and more non-crypto influencers.
Things get slightly different when viewed from a super primitive Ponzi scheme:
Shares give the holder access to a private communication channel through which they can communicate with the issuers. Messages from the issuers themselves are visible to all holders.
This feature essentially allows launching private communities with paid membership - a user needs to buy a share to join an influencer's community or get the opportunity to write to them.
How much of a big trend this Friend.tech thing, actually is?
The project was launched on August 11, 2023, but DeFiLlama recorded the first capital movements on August 17, when the service's TVL (Total Value Locked) increased from $0 to $1.3 million in a day.
Then, there was an announcement about a significant investment by Paradigm in Friend.tech, leading to a surge in buyers purchasing shares.
Paradigm is one of the largest venture capital firms in the crypto market. It invested in the early stages of projects like Blur, Optimism, and Cosmos.
Some lawyers also specified that the "shares" bought through the app could be used to raise capital, attracting the attention of the regulator (SEC, of course).
After this, something else happened… today! the Friend.tech developers renamed "shares" to "keys," adding that such a name "better illustrates their purpose as app elements used to unlock friends' chats."
Consequently, the TVL has reached $7.3 million, and the total number of registered users is approaching 100,000.
Users have sensed opportunities, from airdrops to a new narrative emerging in crypto.
Most likely, the hype will not last long, as was the case with the Clubhouse app (interesting, does it still exist? Does anyone remember it?).
Moreover, The Friend.tech app and related platform tools are in test mode, so errors and potential vulnerabilities are possible. For example, usernames and wallet addresses of more than 100,000 users have already been leaked online. Many criticize Friend.tech's security system. The project has also been flooded with bots running specific scripts.
But in any case, it's a cool start for a new Layer-2 Base network. It's evident that Coinbase, seeking external help, is doing a lot of work and overall making serious preparations for a bull market. They are striving to win the competition.
Coinbase has also acquired a stake in the stablecoin issuer USDC Circle.
What else is missing? Pressure on Binance? Well, we're already used to seeing that.
Well, the question arises - will it eventually become an abandoned ghost-project… or is it going straight to the moon? Time will tell.
ps. The ears… is the platform’s logo！
What's your take?
TL;DR: Arbitrum and Optimism have dominated Layer-2 networks, but the Base network's daily transactions surged to over 900,000 due to the buzz around the Friend.tech app, letting users buy and speculate on "shares" of influencers. The app's rapid growth, including investment from Paradigm, led to a TVL of $7.3 million and nearly 100,000 users, despite concerns about security issues and potential vulnerabilities.
The future of Friend.tech will serve as an example that will prove that, in crypto, things tend to go to extremes.
Sometimes projects go to the moon… While others shoot for the moon, but crash and explode all over it.
The destination was the same… Yet the outcome resulted in tears.
Either tears of joy or, simply, tears of joy.
Well, it’s a novice mistake to ignore the risks that come with shadowing every crypto trader’s move. But… There’s one more Moon-related option.
It’s no surprise that over 15 million people have chosen MoonPay. The gateway to Web3, a platform that makes Web3 less scary than a spider web.
If you can make things easy and safe… That’s the right thing to consider! Check it out!
SELECTED MEME OF THE DAY
FinTech Adviser Titan to Pay $1m to Settle Charges Over Misleading Advertisement. The SEC fines a FinTech adviser Titan with $1m for misleading clients with false advertising.
Bitget Updates KYC Verification Requirements to Comply with Global Regulations. A change is coming to Bitget’s KYC verification this Autumn.
GDA Opens New Bitcoin Mining Facility in Sweden, Powered by Renewable Energy. Renewable energy makes rounds in the crypto mining industry in Sweden.
How did you like today's post?
Keep our newsletters on top of your feed by following this GIF's guide