Base's rapid growth positions the Coinbase-backed Ethereum Layer-2 solution to become a key infrastructure provider

Nansen highlighted significant developments slated for the second quarter, notably Flashblocks, Base Appchains, and smart wallet enhancements

Coinbase-backed Ethereum Layer-2 solution Base is rapidly growing and well-positioned to become a key infrastructure provider for mainstream consumer blockchain applications, according to a new report by Nansen.

This view was highlighted by significant developments slated for the second quarter, namely Flashblocks, Base Appchains, and smart wallet enhancements, which are needed to upgrade the infrastructure for consumer app adoption.

Specifically, Flashblocks are set to reduce pre-confirmation block times from 2 seconds to just 200 milliseconds, potentially making Base the fastest Ethereum Virtual Machine (EVM)-compatible blockchain, set for mainnet launch in Q2.

To drive further consumer use, Base Appchains enable high-throughput apps to deploy dedicated Layer-3 networks on Base, with current deployments including Blackbird’s restaurant loyalty program and Farcade AI’s gaming ecosystem.

"Meanwhile, we anticipate smart wallet improvements that offer advanced user interfaces and programmable spending limits—both crucial for everyday consumer transactions and subscriptions," wrote Nansen.

On-chain metrics highlight this accelerating adoption, with daily active users and developer activity consistently outperforming competing Layer-2s alongside sustained transaction activity despite recent crypto market downturns.

"Notwithstanding the recent volatility in crypto markets, transaction activity on Base remains healthy. In fact, we've seen a slight uptick in transactions per day over the past few months, indicating that despite the broader market trends, activity on the network is sustaining itself."

Currently, Base ranks second only to Arbitrum in terms of total value locked (TVL). However, excluding Arbitrum's Hyperliquid platform would elevate Base to first place.

"Moreover, recent regulatory developments provide tailwinds for Base. The SEC's decision to drop its lawsuit against Coinbase and a more transparent regulatory framework for digital assets are rolling out smoothly. This is especially pertinent given the administration's crypto-supportive stance and the implications for broader institutional and retail participation, which were previously limited by the legal uncertainty," added Nansen.

Given the absence of an official base token, base-native tokens such as AERO, VIRTUAL, CLANKER, and WELL present a viable route for market participants seeking indirect exposure to the ecosystem, according to Nansen.

According to the on-chain analytics firm, these tokens had displayed varied performance year-to-date: CLANKER declined just 18%, outperforming peers like VIRTUAL, which fell 84%. Each token aligns with specific market narratives—AERO leads Base in DeFi volume and memecoin trading; VIRTUAL intersects AI and gaming; CLANKER incentivizes social content creation; and WELL facilitates DeFi payment solutions.

"Coinbase's direct involvement and token listings add further credibility to these assets. For instance, AERO has already secured listings on Kraken and Coinbase, with Coinbase Ventures holding a significant slice of the pie in VIRTUAL."

Although altcoins linked to Base exhibit significant discounts, Nansen recommends awaiting more precise signals of broader crypto market recovery before engaging in substantial positioning.

"Right now, we see two major tailwinds:

– Deep discounts across Base-related tokens, presenting attractive entry points.

– Strong catalysts in Q2, including Flashblocks, appchains, and smart wallet upgrades, driving further adoption."

To conclude, infrastructural improvements, regulatory clarity, and a robust ecosystem position Base to take the lead in the next wave of consumer blockchain applications.