According to Blockchain Analytics company Nansen, Base is a layer 2 network by Coinbase, which could dominate the decentralized finance and consumer application market from the second quarter.
Nansen's latest report highlights on chain activity, robust metrics, and a growing user base as part of the catalysts showing potential explosive performance in the chain.
This suggests a continuing rise in L2 as a Core Defi platform. As we lead the next generation of consumer applications, Tailwinds is shining the spotlight on ecosystem projects and tokens such as Virtuals Protocol (Virtual) and Aerodrome Finance (Aero).
The strong catalysts of Q2's bases could push forward the total value that is even more locked. This includes new app chains, the effectiveness of the U.S. Securities and Exchange Commission, lawsuits against Coinbase, and the growing pro-crypto landscape.
“The base is a direct bet on Coinbase's on-chain future, and given the great effect and scale of Coinbase, we can see that the base is strongly placed,” Nansen wrote in the report.
These catalysts combine with powerful on-chain traction across traditional metrics such as TVL, Stablecoin Velocity and Daily Active users to portray a bullish future for the base. These metrics reflect developer activity, roadmap and funding, and form part of a compelling story about base growth.
Nansen analysts consider this “chain state” to stand out from the other L2s.
Future development
Currently living in Testnet, it is a remarkable development that strengthens the base's growth prospects, along with FlashBlocks, which is set to be released on Q2, and with base apps and smart wallet subaccounts scheduled for release on Q2.
Although there are no native tokens in the base itself, analysts view memokine and artificial intelligence-related tokens as part of the assets that could provide directional exposure to L2.
Projects like Virtual, Aero provide potentially excellent entry points, taking into account current performance. The stories you watch include Defi Meta, games, social FI and payments. The list of expansions to Coinbase and Solana is also an important ecosystem milestone. Bitcoin (BTC) performance is a different performance.
“We are not in a hurry to trade Altcoin as BTC is still trading in the range, but our position for a potential breakout remains important. Analysts said, potentially outweighing basic assets significantly as momentum changes.”
