Solana Surpasses Ethereum Layer 2 Network in Daily Token Issuance

The Ethereum Layer 2 network known as Base, which is backed by Coinbase, has recently been outpaced by Solana in daily token issuance, as revealed by data from Dune Analytics. This shift can be largely attributed to Zora, an emerging on-chain social platform where users can convert their posts into financial assets.

With Coinbase introducing its branding to the Base app in July, Zora is set to offer a user-friendly avenue into what’s being called “Social Finance” or “SocialFi.” The redesigned app combines social feeds with the capability to create tokens directly from posts. This integration has caused Zora’s tokens, which are linked to the Base network, to surge by 440% weekly since the app’s launch. While these tokens have dropped nearly 14% in the last week, they have still seen an incredible rise of more than 500% over the previous month, according to COINMARKETCAP data.

Activity on Zora reached unprecedented levels after the relaunch of the Base app, resulting in the creation of over 1.6 million creator coins, attracting nearly 3 million unique traders and generating over $470 million in total trading volume, as reported by Dune.

“The Creator Coin model is simple yet powerful,” Dune noted. “Each coin offers a fixed supply of one billion, split evenly between creator rewards over five years and market availability, with 1% of all trades sent back to content creators in $ZORA, making user engagement directly impactful on revenue.”

It seems the Concept of “Creator Coin” really does simplify token creation, akin to traditional social media where each post can be traded in an instant. Yet, this approach has drawn some criticism. Research from TK suggests that the rapid growth in content tokens and new users in Zora is mostly driven by trading activities, similar to trends seen in Memecoins, which some argue lack utility.

Moreover, Zora’s governance—or the apparent absence of effective governance—has also stirred some concern online. Still, despite ongoing debates about the viability and rise of content coins, it’s evident that Zora is a significant player in the flourishing “creator economy.” As Dune succinctly remarked, “Whether content coins are a fleeting trend or the future remains to be seen, but what’s clear is that memo coins on Base and the creator economy are rapidly expanding, with Zora at the forefront.”