Is BASE Set to Become the Hub for SocialFi in Web3 After Successful Launch of Friend Tech Token?
Base chain, an Ethereum layer 2, recently received a glowing endorsement from global asset manager Franklin Templeton. The company declared the advent of “Base Season,” indicating that Base will dominate SocialFi, fueled by meme coins and Friend tech.
Since its launch on August 9, Base has been eating the competition for breakfast—with 46% of SocialFi transactions flowing through its veins, leaving BNB Chain and Polygon in its dust.
The launch and subsequent activities will be around Base’s biggest social app, Friend.Tech’s FRIEND tokens have notably propelled this surge.
A Closer Look at Base and Friend Tech’s Triumphs in SocialFi
Since its inception in August, Friend.Tech’s invite-only service uses “keys” to unlock special interactions and content, improving digital networking and creator monetization.
Friend.Tech showcases impressive financial health with a total value locked (TVL) of about $14 million.
The FRIEND token, trading at $2.28, has increased 20% over the past day, ballooning its market cap to $208 million.
FTI Global predicts #Ethereum layer 2 Base will dominate SocialFi, fueled by memecoins and Friend tech.
Recent data shows a 45% surge in #SocialFi transactions on #Base.
USDC supply on Base now tops $2.5 billion. pic.twitter.com/SzKDtEFvfq
— Kyledoops (@kyledoops) May 10, 2024
For traders or investors keeping an eye on FRIEND token, the current setup suggests a cautious approach due to the recent bearish crossover of moving averages and a lack of strong bullish signals from RSI or MACD.
The RSI is currently hovering around the 50 mark, which suggests a neutral market momentum.
However, Friend Tech’s 20-day moving average recently crossed below the 200-day moving average (red line), which is traditionally viewed as a bearish signal, often called a “death cross.”
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Base Outshines its Competitors in Revenue Generation and Transaction Counts
Base is responsible for over 60% ($355,000) of total Layer 2 revenue, significantly ahead of others in this space.
A crucial factor in Base’s ascent is the backing from Coinbase, which has helped the network sport a 2.5 million seven-day moving average daily transaction count, dwarfing that of Optimism and Arbitrum.
Beyond SocialFi tokens like Friend Tech, Base is fueled by meme coins like BRETT, DEGEN, and TOSHI, despite recent market corrections. Additionally, a noteworthy uptick in USDC supply on Base—from $100 million in December to $2.7 billion today—has been pivotal.
Jesse Pollak, the mind behind Base and Coinbase’s head of protocols, envisions a future where on-chain social applications redefine connectivity and interaction.
The Bottom Line: Should You Buy Friend Tech on Base?
Franklin Templeton’s endorsement of the chain reflects a broader recognition of Layer 2 networks’ crucial role in expanding and enriching SocialFi
With a total value locked (TVL) of $5.4 billion, Base ranks as the third largest Ethereum layer 2 network.
There’s no stopping the Base network. As for Friend Tech, it may be overbought now, signaling caution but holds significant long-term value as Base’s top SocialFi token.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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