Base Flips Solana in Daily Token Issuance

Base, Coinbase's Ethereum Layer 2 scaling solution, has overtaken Solana in daily token creation volume, according to data from Dune Analytics. This shift is largely attributed to the rising popularity of Zora, a social network built on Base where every post can be turned into a tradable asset.

SocialFi Drives Growth

Coinbase's rebranding of the Base app in July to focus on SocialFi—social finance—appears to be a major catalyst. The updated app allows users to easily mint tokens from their posts, driving engagement and adoption. This functionality allows for 'creator coins' to be easily created.

Zora Token Soars (Then Dips)

The ZORA token, which powers the Zora network on Base, experienced a significant price surge following the app's launch, climbing as much as 440% in a week. Although it has since retraced, dipping around 14% in the last seven days, ZORA is still up over 500% in the past month according to CoinMarketCap.

Zora's Impressive Metrics

Since the Base App relaunch, Zora has achieved record-breaking metrics, including:

• Over 1.6 million Creator Coins minted
• Nearly 3 million unique traders
• More than $470 million in total volume

The Creator Coin Model

Dune Analytics described the "Creator Coin" model as straightforward but potent. Each coin has a supply of 1 billion, half of which is streamed to the creator over five years, and the remaining half is open to the market. Furthermore, every trade includes a 1% redistribution in $ZORA back to the content creator, directly linking engagement with potential earnings.

Concerns and Criticisms

While the token creation process has been streamlined, resembling social media where every post is instantly tradable, some critics raise concerns. TK Research suggests that the majority of Zora users are traders, potentially indicating a focus on short-term speculation. The lack of a clear governance structure within the Zora ecosystem has also drawn criticism.

Key Takeaways

• Base overtakes Solana in daily token creation due to SocialFi platforms like Zora.
• Zora enables users to easily create and trade 'creator coins' tied to social media posts.
• While Zora sees impressive growth, concerns about speculation and governance remain.