Base, the Layer 2 blockchain launched by Coinbase, is experiencing a significant decline in user engagement despite early successes. After reaching a peak of 1.72 million daily active addresses in June 2025, the number has plummeted to 458,000 by March 2026, marking a 73% drop. This decline follows the announcement of a token issuance in September 2025, which attracted speculative interest but failed to retain users long-term. The platform's attempt to foster a creator economy through the Zora protocol also fell short, with only 0.3% of issued tokens remaining active by year-end 2025. Base's shift in focus towards becoming a self-custody trading app reflects a strategic pivot, yet it highlights the broader challenge facing Layer 2 solutions: creating sustainable user engagement beyond financial incentives. The decline in Base's active addresses mirrors a wider trend in the Layer 2 ecosystem, where many chains struggle to maintain user interest post-incentive periods.