Base, a layer-2 (L2) blockchain developed by Coinbase, has moved from stage 0 to stage 1 of the rollout, effectively overtaking Arbitrum (ARB) as the largest Ethereum scaling solution.
The stages refer to the maturity assessment framework for L2 rollups, based on the stages proposed by Ethereum co-founder Vitalik Buterin.
Base Becomes Ethereum's Second Largest Tier, Arbitrum Follows
Data from L2Beat shows that Arbitrum One is no longer the most bullish rollup on Ethereum. L2Beat is an analytics and research website focused on Ethereum’s Layer-2 scaling.
After growing by $557 million in TVL (total value secured), Base overtook Arbitrum L2 with a lead of over $710 million in total value secured (TVS). Along with overtaking Arbitrum One, Base also moved from Stage 0, where the rollup is fully controlled by its operators (full training wheels).
This is now a phase 1 rollout with smart contract management. However, as there is still a security advisory to address potential bugs, this phase has “limited training wheels.”
“Proud that Base is now at Stage 1 — and#1behind TVS, but it’s still day one. Time to bring the world to blockchain,” wrote Base creator Jesse Pollack.
This comment aligns with Base’s vision of expanding the ecosystem of creators on the blockchain, fostering virality and creativity.
Meanwhile, with Base now among the Stage 1 rollups, it has effectively avoided Vitalik Buterin’s list of L2 networks doomed to fail. In September, Buterin noted a select list of L2 networks doomed to fail if they don’t evolve.
The Ethereum executive noted that he would only recognize L2 networks that have reached Stage 1+ maturity. Buterin referenced his threshold for measuring different stages of L2 based on a scale of decentralization.
“Stage 1 (75% council threshold to exceed proof system, 26%+ councils must be outside the rollup team) is a very reasonable moderate stage. The multisigs I participate in have not had a single survivability failure in years, let alone 26%. The era of rollups glorified as multisigs is over. The era of cryptographic trust is upon us,” Buterin explained.
This ultimatum is consistent with Buterin’s vision for advancing cryptographic trust. Buterin recently proposed a plan to scale Ethereum’s L1 and L2 protocols by 2025.
BeInCrypto reported that it noted the incentives for L2 to align with the Ethereum ecosystem, such as fee burning, staking, and public good funding.
While this is the first time Base has overtaken Arbitrum, it is not the first time it has challenged its market position. In retrospect, Base’s TVL surpassed $2 billion in September after a 400% increase, bringing it within striking distance of Arbitrum’s TVL of $2.6 billion.
Aerodrome remains the leading protocol on Base L2. It has up to $830 million in TVL, up 5% over the past week. Other leading protocols on Base include Morpho, Aave, and Uniswap. As Base takes the lead, it’s impossible to forget about Arbitrum’s Achilles heel. The network is still recovering from an 80% drop. Key recovery measures include token buybacks and the recently rejected Nvidia accelerator program application. According to BeInCrypto, Arbitrum’s ARB price has increased by 2% in the last 24 hours. At the time of writing, it was trading at $0.33.#Write2Earn #BinanceSquare #Binance #crypto #trading $ETH