Meme Culture Fuels Crypto Boom, Says Base Creator

In A Nutshell

Jesse Pollak, the creator behind Base, a Coinbase-adjacent layer-2 network, attributes a significant surge in crypto onboarding to the influence of memes. This trend, described as a “Cambrian explosion,” indicates a growing intersection between internet culture and digital asset adoption. Base has seen a substantial increase in total value locked (TVL), nearly tripling since March, with memecoins playing a pivotal role in this growth. Pollak suggests that the creative and communal aspects of meme culture are crucial for attracting millions more to the platform.

The Rise of Memecoins on Base

Following the Ethereum Dencun upgrade in mid-March, which lowered fees on layer-2 networks, Base witnessed a dramatic increase in memecoin activity and overall transactions. This led to a nearly 250% growth in TVL since early March, reaching an all-time high of $1.61 billion by April 21, according to data from DefiLlama. Memecoins such as BRETT, DEGEN, and TOSHI have emerged as major contributors to this expansion, with BRETT experiencing a remarkable 7,780% price increase since March.

Cultural Onboarding through Memes

Pollak emphasizes the role of memes not only as tools for speculation but also as means to engage and onboard new users into crypto communities. This process has fostered a diverse range of onboarding experiments, aiming to translate unique cultural elements into the digital economy. The success of these efforts is evident in the hundreds of sub-cultures and teams actively participating in Base, contributing to its vibrant ecosystem.

Challenges and Opportunities

Despite the optimistic outlook, challenges remain, particularly in ensuring the security and integrity of memecoins. A recent investigation highlighted that 16.7% of new Base memecoins were scams, with over 90% revealing vulnerabilities. This underscores the importance of due diligence and the need for ongoing efforts to mitigate risks associated with emerging digital assets.

Our Take

The integration of meme culture with cryptocurrency represents a fascinating evolution in how digital communities can drive technological adoption and create new economic paradigms. While the potential for growth and innovation is immense, it is accompanied by significant challenges, particularly in safeguarding against scams and vulnerabilities. As the crypto ecosystem continues to evolve, the creative and communal spirit of memes could play a crucial role in shaping its future, provided that the community remains vigilant and proactive in addressing the inherent risks.