The Base network, a Layer 2 solution developed by Coinbase, has taken the lead in daily token creation, exceeding the activity on Solana for the first time since 2023.
This change in dominance is largely attributed to Zora, a protocol that allows users to convert their digital creations into tradable digital assets.
Base Overtakes Solana
According to data analyzed by Sealaunch and displayed on Dune Analytics, Base witnessed the creation of over 100,000 new tokens on July 27th and 28th alone, with the majority originating on the Zora platform.
In contrast, Solana-based platforms such as Pump.fun and LetsBonk generated a considerably smaller number of tokens during the same timeframe.
Jesse Pollak, a key figure in the development of Base, acknowledged this achievement, noting that their network now holds the top position in on-chain token issuance.
Coinbase’s Conor Grogan also highlighted the importance of this development, calling it a significant milestone for the on-chain ecosystem.
The Rise of Zora-based Tokens
The recent surge in Zora’s popularity reflects a growing trend in blockchain-based content monetization.
While Zora initially garnered attention before its token distribution in April, the recent increase in activity demonstrates renewed interest in “content coins,” which are tokens linked to individual digital posts or concepts.
However, the blockchain analytics firm TK Research pointed out that Zora’s ecosystem is primarily driven by speculative activity.
According to their analysis, around 93% of users are primarily engaged in trading, while only 6.1% are solely content creators. Less than 1% are involved in both creation and trading.
Due to this imbalance, some critics argue that Zora’s system fosters speculation rather than genuine content creation.
AI researcher Sterling Crispin commented that such tokens often resemble “shitcoins” due to their “low liquidity on automated market makers with exponential price curves.”
Crispin elaborated:
“Whether you call them Creator Coins, Culture Tokens, Internet Capital Markets, Music Tokens, AI Tokens, or Memecoins, the underlying issues remain. It’s a zero-sum game of musical chairs where someone always loses for another to win. Retail investors often get exploited by sophisticated traders, coordinated schemes, and automated trading bots.”
Pollak, however, defended the model, stating that content and creators have historically been undervalued, and tokens have the potential to correct this.
He further stated:
“Digital assets are the most potent instrument we have in this space to facilitate the unrestricted movement of value. Creators should be empowered to utilize them.”