Since the beginning of April, more than a million new tokens have been created, with over 370,000 appearing on Ethereum, owing to activity on Coinbase’s Layer 2 network, Base.

Solana leads with the creation of over 640,000 new tokens, primarily meme coins.

Base Sees Increased User Activity

According to the data shared by Coinbase director Conor Grogan, 372,642 new tokens have been launched on the Ethereum network alone since April 1, with 88% of them on Coinbase’s Layer 2 blockchain, Base.

This surge in activity on the Layer 2 network is driven by users flocking to the low-cost platform to create new meme coins. Interestingly, the number of tokens created on Ethereum in this short period is double the total number launched between 2015 and 2023.

Base experienced a revival in user activity this quarter. This is evident in Franklin Templeton’s recent report which highlighted that the blockchain has gained substantial traction from SocialFi applications like Friend.Tech. It found that several leading crypto-based social applications are being built on the Layer 2 network.

In fact, Base processes around 46% of all SocialFi transactions, making this sector vital for the network’s adoption and growth, according to the asset manager’s statistics.

Data from L2BEAT further revealed that Base is currently positioned as the third largest Ethereum Layer 2 network boasting $5.48 billion in total value locked (TVL).

New users on Base have been consistently increasing since the beginning of the year but gained notable traction after March. Dune Analytics’ data indicated that the daily user count on the network increased from 4.6 million in March to 8.9 million in May, reflecting a 92.86% increase in just two months.

Solana’s Meme Coin Explosion

Meme coins made up the majority of the 643,227 new tokens created on Solana during the same period. Some of them that have posted massive gains are dogwifhat (WIF), Bonk (BONK), and Slerf (SLERF), among others.

Besides spot Bitcoin ETF hype, meme coin mania has played a crucial role in the current market cycle. Many industry players have touted this cycle as “bizarre” as a result. However, most of these tokens have since collapsed or become worthless, with meme coin scams rife not just on Solana but also on Base.

Meanwhile, CryptoQuant co-founder Ki Young Ju recently warned against the meme coin hype, asserting that these assets often overshadow the efforts of dedicated teams working on legitimate products that could propel industry progress.

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