Bald

Frenzy

Memecoin

Elon Musk

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  Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions. 
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<p class="has-drop-cap">Over the weekend, Base’s total value locked (TVL) climbed by over 3,000 percent, from $2.2 million on Sunday to $78.2 million on Monday. Despite being under construction, Ethereum’s scaling network Base got into the top ten layer 2 solutions. The sudden surge in the TVL is likely due to a new memecoin frenzy on the layer 2 solution.</p> 
<h3 id="base-tvl-up-exponentially">Base TVL Up Exponentially </h3> 
<p>Since its inception, Ethereum has had to tackle network congestion problems, often resulting in prohibitive transaction fees unsuited for mass adoption. After all, data bandwidth for any computer network, blockchain or not, is inherently limited.</p> 
<p>Ethereum developers pushed for a rich scaling network ecosystem as roads unload traffic from Ethereum’s mainnet highway. Each layer 2 (L2) has its technique to increase transaction throughput while providing lower fees. Until late 2022, Optimism was the most popular but was overtaken by Arbitrum One in the first half of 2023.</p> 
<p>Base is the latest L2 newcomer <a href="https://tokenist.com/how-optimism-powered-base-can-onboard-110m-coinbase-users-to-defi/" rel="noopener noreferrer nofollow" class="deco-link">launched by Coinbase</a> in February, still having under 1% Ethereum scaling market share. As another Optimistic rollup, Base surged tremendously within a day, earning 10th rank, above Polygon’s zkEVM.</p> 
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  <img decoding="async" width="1024" height="582" src="https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359-1024x582.png" alt="" class="wp-image-164893" srcset="https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359-1024x582.png 1024w, https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359-300x171.png 300w, https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359-768x437.png 768w, https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359-650x370.png 650w, https://tokenist.com/wp-content/uploads/2023/07/Screenshot-2023-07-31-163359.png 1173w" sizes="(max-width: 1024px) 100vw, 1024px"> 
  <figcaption class="wp-element-caption"> <em>Image courtesy of l2beat</em> 
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<p>At $78.2 million TVL, Base is closing in on Loopring, previously <a href="https://tokenist.com/loopring-video-demonstrates-how-to-eliminate-eth-gas-fees/" rel="noopener noreferrer nofollow" class="deco-link">picked by GameStop</a> to power its NFT marketplace. </p> 
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<h3 id="bald-boosting-base">Bald Boosting Base</h3> 
<p>Since <a href="https://tokenist.com/dogecoin-hits-2-month-high-after-musk-adds-d-to-twitter-profile/" rel="noopener noreferrer nofollow" class="deco-link">Elon Musk popularized Dogecoin</a> (DOGE), memecoins have become tokenized gambling. The pattern is always the same:</p> 
<ul> 
 <li>Social media frenzy drastically increases a meme token’s price.</li> 
 <li>This initial boost creates a FOMO effect, fear of missing out.</li> 
 <li>Not knowing where the top or the bottom will hit, most investors hold the bag, as insider/lucky investors ‘pull the rug’ at the top.</li> 
</ul> 
<p>The same process is still unfolding with Bald (BALD), having started on Sunday. As a homage to Brian Armstrong, CEO of Coinbase, Bald memecoin surged over 300% on Monday.&nbsp;</p> 
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  <img decoding="async" src="https://tokenist.com/wp-content/uploads/2023/07/bald.png" alt="" class="wp-image-164908" width="840" height="535" srcset="https://tokenist.com/wp-content/uploads/2023/07/bald.png 1002w, https://tokenist.com/wp-content/uploads/2023/07/bald-300x191.png 300w, https://tokenist.com/wp-content/uploads/2023/07/bald-768x490.png 768w, https://tokenist.com/wp-content/uploads/2023/07/bald-650x415.png 650w" sizes="(max-width: 840px) 100vw, 840px"> 
  <figcaption class="wp-element-caption"> <em>Bald underwent several waves of speculative floods, wherein seemingly bottoms were only the beginning of new highs. Image courtesy of Coinbase.</em> 
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<p>Bald’s valuation frenzy is all the more impressive given that, <a href="https://tokenist.com/pepe-has-lost-1-6b-in-market-cap-since-binance-listing/" rel="noopener noreferrer nofollow" class="deco-link">unlike Pepe</a>, it has no discernable origin – website, utility, or narrative outside of being themed after Brian Armstrong. Nonetheless, Bald embodies tokenized gambling, with some investors gaining $1 million from a tiny $1,000 investment.&nbsp;</p> 
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  <blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
   <p lang="en" dir="ltr">These 4 addresses spent 0.534 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($1K) to buy 50M <a href="https://twitter.com/search?q=%24BALD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BALD</a> (50% of the total supply) within 4 mins of <a href="https://twitter.com/search?q=%24BALD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BALD</a> starting trading.<br><br>Then sold 37M <a href="https://twitter.com/search?q=%24BALD&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$BALD</a> for 554 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$ETH</a>($1.04M).<br><br>Earned $1M with $1K in 1 day! <a href="https://t.co/gXIDRjbhic" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/gXIDRjbhic</a></p>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1685656638328557569?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 30, 2023</a> 
  </blockquote> 
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
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<p>When news of astronomic gains spreads, this further boosts the FOMO effect. This means that copycat memecoins also benefit, as it happened with <a aria-label=" (opens in a new tab)" href="https://dexscreener.com/base/0xdc83cdcbde7748f2023c0cecee1818c20c23bae6" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">BASED</a>. BOLD and BASED have been tradeable on LeetSwap decentralized exchange (DEX).</p> 
<p>This DEX prides itself on being “the #1 DEX for leet degens”, wherein “degens” is a derogatory reference for speculative (degenerate) traders, while “leet” is derivative of elite, used initially to obfuscate online activities within the leetspeak hacker subculture.&nbsp;</p> 
<p>In addition to supporting Polygon zkEVM, LeetSwap is also live on Base, resulting in its massive TVL boost via BOLD and BASED speculative meme mania.</p> 
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<h3 id="ethereum-scaling-is-still-a-work-in-progress">Ethereum Scaling is Still a Work in Progress</h3> 
<p>When Coinbase launched the Base testnet in late February, it opted for an open-source approach to make dApps easier, cheaper, and safer. This means building with the Optimism (OP) stack, the original Ethereum scaling solution under the <a href="https://github.com/ethereum-optimism/optimism/blob/develop/LICENSE" class="deco-link" target="_blank" rel="noopener noreferrer nofollow">MIT permissive l</a><a aria-label="i (opens in a new tab)" href="https://github.com/ethereum-optimism/optimism/blob/develop/LICENSE" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">i</a><a href="https://github.com/ethereum-optimism/optimism/blob/develop/LICENSE" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">cense</a>.</p> 
<p>Using Optimistic rollups, Base batches transactions off-chain only to submit them back to Ethereum mainnet as a single transaction. This compression then alleviates Ethereum’s congestion and lowers gas fees. However, as the name implies, these rollups assume that every transaction in a batch is valid.&nbsp;</p> 
<p>Although fully compatible with Ethereum smart contracts, the drawback of this approach is that one has to wait for one week before withdrawing funds. This is when rollup sequencers publish fraud proofs to the Ethereum mainnet, rolling back invalid transactions.</p> 
<p>Not only is Base still in development but Optimism as well. This includes the hot-button issue of defending against <a href="https://tokenist.com/mev-bots-and-sandwich-attacks-how-do-they-work/" rel="noopener noreferrer nofollow" class="deco-link">front-running attacks</a>. Optimism plans to <a href="https://help.optimism.io/hc/en-us/articles/4444375174299-Is-transaction-front-running-possible-on-OP-Mainnet-" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">decentralize rollup sequencers</a>, but it remains unclear how that will affect the front-running frequency.</p> 
<p>Other scaling solutions, from zkSync and Loopring to Arbitrum One, are also work in progress, regularly <a aria-label=" (opens in a new tab)" href="https://drive.google.com/file/d/182ycEW8C2wk5tGd3X1tG8oQfUy9WmSJk/view" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">unrolling upgrades</a>. Suffice it to say, in a half-finished state, this is the domain of degens, just as it was in the <a href="https://tokenist.com/defi-reaches-all-time-high-12-7-billion-total-value-locked/" rel="noopener noreferrer nofollow" class="deco-link">DeFi summer</a> of 2020.&nbsp;</p> 
<p><strong><em>Do you think tokenized gambling via memecoins is more reliable than classic gambling? Let us know in the comments below.</em></strong></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/bases-tvl-surges-exponentially-as-memecoin-frenzy-takes-over/">Base’s TVL Surges Exponentially as Memecoin Frenzy Takes Over</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Base’s TVL Surges Exponentially as Memecoin Frenzy Takes Over

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