Base’s Rapid Growth and Infrastructure Developments

Base’s rapid growth positions it as a key infrastructure provider for mainstream consumer blockchain applications, according to a new report by Nansen.

Nansen highlighted significant developments scheduled for the second quarter, notably Flashblocks, Base Appchains, and smart wallet enhancements, which reflect necessary infrastructure upgrades for consumer app adoption.

Flashblocks, set 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.

Base Appchains enable high-throughput apps to deploy dedicated Layer-3 networks on Base. Current deployments include Blackbird’s restaurant loyalty program and Farcade AI’s gaming ecosystem.

In addition, Nansen anticipates smart wallet improvements that will offer advanced user interfaces and programmable spending limits, which are critical for everyday consumer transactions and subscriptions.

Base’s on-chain metrics showcase accelerating adoption. Nansen notes that robust daily active users and developer activity consistently outperform competing Layer-2 solutions, alongside sustained transaction activity despite recent downturns in the crypto market.

As noted by Nansen, Base currently ranks second only to Arbitrum in total value locked (TVL); excluding Arbitrum’s Hyperliquid platform would elevate Base to first place.

Regulatory Developments

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 under a crypto-supportive administration reduce the uncertainty that previously hindered institutional and retail participation.

Nansen-native assets

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

Nansen noted varied performance for these tokens year-to-date: CLANKER declined only 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.

Nansen believes that Coinbase’s involvement and token listings add credibility to these assets. For instance, AERO has secured listings on Kraken and Coinbase, with Coinbase Ventures holding a significant stake.

While altcoins linked to Base are showing significant discounts, Nansen recommends waiting for clearer signals of broader crypto market recovery before making substantial investments.

> “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.”

Overall, Nansen’s analysis suggests that Base’s infrastructural improvements, regulatory clarity, and robust ecosystem position it well to lead the next wave of consumer blockchain applications.