Base, the Ethereum Layer 2 network backed by Coinbase, has overtaken Solana (known for Memecoin Support) with daily token issuance, Dune Analytics data shows.
This change is primarily driven by Zora. Zora is a fast-growing on-chain social network in which all posts become financial assets. It will soon be a consumer-friendly gateway for on-chain social finance or “SocialFi” after Coinbase’s July base app branding.
The redesigned app fuses social feeds with tokenmint, allowing users to create tokens directly from the post. This move helped the little-known Zora tokens running on the base network jump 440% each week while the app is launched. Tokens have fallen to nearly 14% in the last seven days, but have risen over 500% last month, according to CoinmarketCap data.
According to Dune, activity on Zora has reached an all-time high since the base app rebooted.
Token creations in Zora (marked in black) are rapidly increasing. (Sand Dunes)
“The Creator Coin model is simple but powerful,” Dune said in an email.
“Each coin has a fixed supply of 1 billion, half streamed to creators over five years, with half open to the market. All trade sends 1% back to content originators in $ZORA, linking engagement directly to revenue.”
The “Creator Coin” model appears to simplify token creation, similar to traditional social media where every post is instantly tradeable, but it’s not without critics.
According to TK Research, the momentum in creating content tokens and the new users of Zora are strong. However, it appears that the majority of Zora users are traders, meaning they are potentially focused on short-term speculation. However, some people argue that the same is true of Memecoin due to the lack of use cases.
Meanwhile, Zola’s governance, or lack of it, is also causing social media backlash.
Despite the debate, for now it appears that the “creator economy” has found a home for retail-driven activities.
“There’s been a debate about whether content coins are trending or the future, but one thing is clear: base memo coins and creator economy are growing rapidly, and Zola is at the heart of it,” Dune wrote in an email.