Nansen Insights: On-Chain Activity and Upcoming Catalysts Indicate Growth in Q2
According to blockchain analytics firm Nansen, Base, the layer-2 network developed by Coinbase, is poised to take a leading role in the decentralized finance and consumer applications sector starting in the second quarter.
Nansen’s recent report emphasizes key factors such as on-chain activity, strong metrics, and an expanding user base as indicators that Base may experience significant growth in Q2.
This implies that the L2 is on track to solidify its position as an essential DeFi platform. In addition to spearheading the next wave of consumer applications, the favorable conditions leading into the upcoming quarter highlight ecosystem projects and tokens, such as Virtuals Protocol (VIRTUAL) and Aerodrome Finance (AERO).
Key drivers for Base in Q2 that are likely to elevate its total value locked include the introduction of new app-chains, the U.S. Securities and Exchange Commission’s decision to drop its lawsuit against Coinbase, and the increasingly supportive pro-crypto environment.
Nansen stated in its report, “Base is Coinbase’s direct bet on an onchain future, and given Coinbase’s vast network effects and scale, we believe Base is well-positioned.”
The combination of these catalysts and robust on-chain performance across traditional indicators, such as TVL, stablecoin velocity, and daily active users, suggests a promising outlook for Base. These metrics signify developer engagement, strategic plans, and funding, contributing to a compelling narrative for Base’s expansion.
Nansen’s analysts regard this “State of the Chain” as a distinct advantage for Base compared to other layer-2 solutions.
Upcoming Developments
Among the noteworthy developments strengthening Base’s growth potential are Flashblocks, which are currently operational on the testnet and set for a mainnet launch in Q2, alongside Base appchains and smart wallet sub-accounts anticipated for release in Q2.
Although Base does not yet possess a native token, analysts suggest that memecoins and AI-linked tokens are likely candidates for providing exposure to the L2.
Projects such as VIRTUAL, AERO, and others present promising entry opportunities based on their current trajectories. Key narratives to monitor include DeFi meta, gaming, SocialFi, and payment systems. Notably, listings on Coinbase and expansion into Solana represent essential milestones for the ecosystem, along with Bitcoin (BTC) performance.
“With BTC currently trading within a range, we’re not in a hurry to execute altcoin trades, but preparing for a possible breakout remains crucial. If momentum shifts, Base-native assets could see substantial outperformance,” the analysts remarked.