Base, an Ethereum Layer 2 network incubated by Coinbase, has emerged as a dominant player in the rapidly evolving SocialFi sector, according to a recent report by Franklin Templeton. With a staggering 46% of all on-chain SocialFi transactions, Base surpasses established competitors like BNB Chain and Polygon.

Friend.tech, a notable SocialFi application built on Base, exemplifies the platform's potential. It enables creators to connect and monetize their content directly with their audiences through innovative mechanisms such as "key" shares or "tokenized attention" schemes. This approach empowers creators to capture value from their work while fostering meaningful connections with their followers.

Franklin Templeton's analysis suggests that SocialFi will be a "key vertical" to watch for Base's adoption and growth in the long run. The asset manager believes that Base is well-positioned to "capture a material share of SocialFi activity and remain a leader in the Ethereum L2 sector going forward."

Beyond SocialFi, the report also acknowledges the recent memecoin mania as a contributor to Base's rise in network activity. As memecoins gained widespread popularity, Base's infrastructure proved capable of handling the increased transaction volume and user demand.

While Base's current total value locked (TVL) of $5.4 billion trails behind Arbitrum One ($15.9 billion) and OP Mainnet ($6.90 billion), its rapid growth trajectory is noteworthy. Base has risen from $1 billion to $5.4 billion in less than three months, demonstrating its potential for further expansion.

Coinbase currently acts as the sole sequencer of Base, meaning the chain is fully controlled by the exchange. However, Coinbase has expressed its intention to progressively decentralize Base over time, aligning with the core principles of blockchain technology. As the SocialFi sector continues to evolve and gain mainstream attention, Base's position as a leader in this space could prove invaluable. With the backing of industry giants like Franklin Templeton and Coinbase, Base stands poised to shape the future of content creation, monetization, and community engagement on the blockchain.