Base, Coinbase’s layer-2 network, is poised for significant expansion in Q2, according to blockchain analytics firm Nansen. With strong on-chain activity, ecosystem growth, and regulatory tailwinds, Base could become a dominant force in decentralized finance (DeFi) and consumer applications.

Strong On-Chain Metrics Fuel Growth

Base’s ecosystem shows robust development and increasing adoption

Nansen’s latest report highlights several indicators of Base’s growth:

• Increased Total Value Locked (TVL): More capital is flowing into Base’s DeFi projects.
• Rising Daily Active Users: The network’s user base continues to expand.
• Stablecoin Velocity and Transaction Volume: On-chain liquidity is strengthening.

These metrics suggest sustained momentum heading into Q2, with projects like Virtuals Protocol (VIRTUAL) and Aerodrome Finance (AERO) gaining traction.

Key Catalysts Driving Base’s Expansion

Several factors could accelerate Base’s adoption in Q2

• New App-Chains: More applications will launch on Base, increasing utility.
• SEC Dropping Lawsuit Against Coinbase: Regulatory clarity may boost investor confidence.
• Pro-Crypto Policy Shifts: A more favorable environment for blockchain innovation.

“With Coinbase’s scale and network effects, Base is positioned strongly for an on-chain future,” Nansen noted.

Upcoming Developments Strengthen Base’s Outlook

Major updates are set to enhance Base’s ecosystem

• Flashblocks: Currently on testnet, scheduled for mainnet launch in Q2.
• Base App-Chains: Expansion of Base’s modular ecosystem.
• Smart Wallet Sub-Accounts: New functionalities for users and developers.

While Base does not have a native token, analysts suggest that memecoins and AI-related tokens could offer directional exposure.

Market Positioning and Future Outlook

Base-native assets could outperform in the right market conditions

Nansen analysts highlight key narratives to watch:

• DeFi Meta: Base is becoming a major hub for DeFi projects.
• Gaming and SocialFi: Growing adoption in blockchain-based entertainment and social networks.
• Payments and Token Listings: Potential integrations with Solana and Coinbase listings.

Bitcoin’s performance will also play a role in shaping Base’s Q2 trajectory. Analysts believe a market shift could drive Base-related assets to new highs.