1inch Partners with Coinbase’s Base Network for Integration
Decentralized exchange aggregator 1inch has announced a partnership with Coinbase’s Ethereum Layer 2 network, Base. The integration allows 1inch to deploy its Aggregation Protocol and Limit Order Protocol on Base, which aims to bring liquidity from various decentralized exchanges into its ecosystem. The 1inch limit order protocol offers investors the ability to strategically buy and sell orders at predetermined values, unlike the instant common price conversions offered by other decentralized exchanges. 1inch sees Base as a promising Layer 2 solution and shares its philosophy of bringing more users to the blockchain.
Base Network Sees Positive Growth with Daily Users and Tokenized Social Network
Since its launch, Base Network has attracted decentralized applications to its ecosystem, resulting in a surge of daily active users, surpassing 100,000. One driving factor behind this growth is the buzz around Friend.tech, a social network that allows tokenized Twitter accounts to access private chats based on the account’s “key” holders. Base’s Onchain Summer initiative, featuring Coca-Cola’s “Masterpiece” NFT collection, has also contributed to its success. Base has outperformed other notable scaling solutions like Arbitrum and Optimism in terms of daily transactions, with a seven-day average of 813,000 transactions.
Meme Coin Trading Dominates Base Network’s Landscape
While Base Network has seen impressive growth, it’s important to note that meme coin transactions currently dominate the landscape. According to Dextool data, a significant portion of Base’s trading activity comes from meme coin trading. Fake Friend.tech tokens represent 50% of Base’s trading volumes, exposing the developing nature of the ecosystem. However, recent developments, such as Compound joining Base and Circle’s integration with Base, scheduled for September, are shaping the network’s growth trajectory.
Hot Take
1inch’s partnership with Coinbase’s Base Network is a significant step towards expanding the reach of decentralized exchanges. By integrating the 1inch protocols into Base, more liquidity can be pulled from various exchanges, providing investors with greater flexibility in buying and selling orders. Additionally, Base’s rapid growth in daily active users and its initiatives like Friend.tech and NFT collections indicate its potential to become a prominent player in the Ethereum Layer 2 ecosystem. However, the dominance of meme coin trading on Base highlights the need for more diverse and sustainable trading activities in the decentralized finance sector.
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