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Base’s rapid advancement positions the Coinbase-supported Ethereum Layer-2 solution to become a significant infrastructure provider for mainstream consumer blockchain applications, according to a recent report by Nansen.
Nansen emphasized notable developments expected in the second quarter, particularly Flashblocks, Base Appchains, and enhancements to smart wallets, which reflect the infrastructure improvements necessary for consumer application adoption.
Flashblocks, scheduled for mainnet launch in Q2, will reduce pre-confirmation block times from 2 seconds to just 200 milliseconds, potentially making Base the fastest Ethereum Virtual Machine (EVM)-compatible blockchain.
Further promoting consumer usage, Base Appchains allow high-throughput applications to establish dedicated Layer-3 networks on Base. Current implementations include Blackbird’s restaurant loyalty program and Farcade AI’s gaming ecosystem.
Meanwhile, Nansen anticipates improvements to smart wallets that will provide enhanced user interfaces and programmable spending limits, which are essential for everyday consumer transactions and subscriptions.
Base’s on-chain metrics illustrate this growing adoption. Nansen observes that robust daily active users and developer activity consistently surpass competing Layer-2s, alongside sustained transaction volume despite recent downturns in the crypto market.
As noted by Nansen, Base currently ranks second only to Arbitrum in total value locked (TVL), although excluding Arbitrum’s Hyperliquid platform would elevate Base to the top position.
Regulatory developments also present favorable conditions for Base. The SEC’s recent decision to withdraw its lawsuit against Coinbase and a clearer regulatory framework for digital assets under a crypto-friendly administration reduce the uncertainty that previously hindered institutional and retail engagement.
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Nansen-native assets
In light of the lack of an official base token, base-native tokens such as AERO, VIRTUAL, CLANKER, and WELL, according to Nansen, offer a viable avenue for market participants seeking indirect exposure to the ecosystem.
Base tokens (Source: Nansen)
Nansen noted that these tokens have shown varied performance year-to-date: CLANKER decreased by only 18%, outperforming peers like VIRTUAL, which dropped 84%. Each token aligns with specific market narratives—AERO leads Base in DeFi volume and memecoin trading; VIRTUAL intersects AI and gaming; CLANKER encourages social content creation; and WELL supports DeFi payment solutions.
Nansen believes that Coinbase’s direct involvement and token listings lend additional credibility to these assets. For instance, AERO has already achieved listings on Kraken and Coinbase, with Coinbase Ventures holding a significant stake.
While altcoins associated with Base exhibit substantial discounts, Nansen advises waiting for clearer signals of a broader crypto market recovery before making significant investments.
“At present, we identify two major tailwinds:
– Significant discounts across Base-related tokens, offering attractive entry points.
– Strong catalysts in Q2, including Flashblocks, appchains, and smart wallet upgrades, driving further adoption.”
Overall, Nansen believes that Base’s infrastructural advancements, regulatory clarity, and robust ecosystem position it well to lead the next wave of consumer blockchain applications.
The post Altcoin breakout on Base might outperform Bitcoin long term – Nansen appeared first on CryptoSlate.
