- Base decentralized exchanges hit record users.
- Meme coin market activity drives user growth.
- Base DEXs surpass BNB Chain, second only to Solana.
Decentralized Exchanges (DEX) are a key part of the crypto ecosystem. They allow users to manage their own funds and offer unparalleled transparency. While CEXs still dominate in volume and user base, DEXs are carving a niche for themselves, especially in trading small-cap tokens.
Thanks to this trend, Base is becoming increasingly relevant for DEX traders. Most recently, the network overtook BNB by DEX volume, trailing only behind Solana. Interestingly, memecoins appear to be the main driver.
Base DEX Records Unprecedented Growth in User Numbers
On Monday, June 17, Base decentralized exchanges (DEX) achieved a new milestone by reaching 267,000 users, the highest number ever recorded for the platform. This has propelled Base ahead of BNB Chain, making it the second most popular DEX by user count, just behind Solana.
The significant increase in Base DEX’s user base is closely linked to the active memecoin market on the Base chain. Meme coins like DEGEN, and BRETT have attracted substantial trading activity, contributing to base trading volumes.
Launched in February, DEGEN reached a high of $0.064 on March 31, rising over 8000% in that period, reaching $800 million in market cap. However, the token continued to decline since then and is currently trading at 0.0089.
BRETT, on the other hand, saw its high on June 8, and is up 216.76% since launch, reaching a market cap of $1.2 billion. The market caps that these tokens reached at one point show just how active the memecoin community is on Base.
Memecoins Drive Success of Base, Solana
Base, similarly to Solana, emerged as a leading platform in the memecoin market. This was largely due its their lower transaction fees compared to Ethereum. Memecoin traders often buy small volumes of tokens, making low fees a significant concern.
Unlike Solana, which is its own Layer 1 chain, Base is a Level 2 scaling solution to Ethereum. This gives it the added advantage of Ethereum compatibility, which is advantageous as Ethereum remains by far the largest smart contract-enabled blockchain.
However, it will take some time for Base to overtake Solana for the number-one spot in terms of users. For one, launching tokens on Solana is incredibly easy, which has attracted many influencers to the platform.
On the Flipside
- User metrics on the blockchain should be taken with a grain of salt. Without a reliable way to identify real users, bots can inflate user numbers. However, this is true for all chains, not just Base.
- While not as popular as centralized exchanges, DEXs have a role by enabling the trading of small-cap tokens not available on most centralized exchanges.
Why This Matters
The memecoin frenzy is controversial due to the quality of the projects launched. However, the proliferation of small-cap tokens did expand the DEX user base, which could move crypto towards a more decentralized future.
Read more about how Solana became dominant in the memecoin market:
How Solana Became the Home of Memecoin Token Launches
Read more about the controversies around Trump’s alleged token:
Rumored Trump Token DJT Sparks Concerns Over Insider Trading
Sourced from dailycoin.com.
Written by on 2024-06-18 20:30:00.
