As per the findings of blockchain analytics firm Nansen, Base, the layer-2 network created by Coinbase, is set to emerge as a frontrunner in the decentralized finance and consumer applications space starting in the second quarter.
Nansen’s latest report highlights essential elements such as on-chain activity, robust metrics, and a growing user base as signs that Base is likely to experience considerable growth in Q2.
This suggests that the L2 is on track to cement its role as a vital DeFi platform. Moreover, as it leads the next wave of consumer applications, the positive conditions heading into the forthcoming quarter underscore ecosystem projects and tokens like Virtuals Protocol (VIRTUAL) and Aerodrome Finance (AERO).
Factors that are expected to boost Base’s total value locked in Q2 include the launch of new app-chains, the U.S. Securities and Exchange Commission’s decision to dismiss its lawsuit against Coinbase, and a more supportive pro-crypto landscape.
Nansen remarked in its report, “Base is Coinbase’s direct investment in an on-chain future, and given Coinbase’s extensive network effects and scale, we believe Base is exceptionally positioned.”
The interplay of these catalysts alongside strong on-chain activity across traditional indicators, such as total value locked (TVL), stablecoin velocity, and daily active users, points to a bright future for Base. These metrics reflect developer involvement, strategic initiatives, and funding, creating a compelling narrative for Base’s growth.
Nansen’s analysts view this “State of the Chain” as a unique advantage for Base when compared to other layer-2 solutions.
Upcoming Developments
Among the significant developments enhancing Base’s growth potential are Flashblocks, which are currently live on the testnet and scheduled for a mainnet launch in Q2, alongside Base appchains and anticipated smart wallet sub-accounts also expected in Q2.
While Base does not yet have a native token, analysts indicate that memecoins and AI-related tokens could be promising avenues for gaining exposure to the L2.
Projects like VIRTUAL, AERO, and others offer attractive entry points based on their current pathways. Key narratives to keep an eye on include DeFi meta, gaming, SocialFi, and payment systems. Notably, listings on Coinbase and expansion into Solana are crucial milestones for the ecosystem, along with Bitcoin (BTC) performance.
“With BTC trading within a range, we’re not rushing to make altcoin trades, but it’s essential to prepare for a potential breakout. If the momentum shifts, Base-native assets could significantly outperform,” the analysts commented.
