Base, a Layer-2 (L2) blockchain developed by Coinbase, has recently made a significant leap in its development, transitioning from a Stage 0 to Stage 1 rollup. This move has propelled Base to surpass Arbitrum (ARB) as the largest Ethereum scaling solution on the market.
When it comes to assessing the maturity of Layer-2 rollups, the concept of stages plays a crucial role. These stages are based on a framework proposed by Ethereum co-founder Vitalik Buterin, outlining key milestones for the progression of L2 solutions.
Base Emerges as the Leading Ethereum L2 Solution
Recent data from L2Beat, an analytics and research platform focused on Ethereum layer-2 scaling, reveals that Base has now taken the lead over Arbitrum One, marking a significant shift in the landscape of optimistic rollups on Ethereum.
Following a substantial $557 million increase in Total Value Locked (TVL), Base has managed to outpace Arbitrum L2, securing a total value of over $710 million (TVS).
Image Source: L2Beat
In addition to surpassing Arbitrum One in terms of TVS, Base has also progressed from Stage 0 to Stage 1 rollup. In this new stage, smart contract governance is introduced, although a security council remains in place to address potential bugs, providing a level of oversight akin to “limited training wheels.”
“Proud that Base is now stage 1 — and #1 by TVS but it’s still day one. Time to bring the world on-chain,” shared Base creator Jesse Pollak.
This milestone aligns with Base’s mission to enhance the on-chain creator ecosystem, fostering innovation and engagement within the community.
With Base reaching Stage 1 status, it has successfully avoided being listed among the L2 solutions that Vitalik Buterin previously highlighted as facing potential challenges. In a recent statement, Buterin welcomed Base to the stage 1 gang, emphasizing the importance of achieving a higher level of maturity within the L2 ecosystem.
“Stage 1 (75% threshold on the council to override the proof system, 26%+ of the council must be outside the rollup team) is a very reasonable moderate milestone. The era of rollups being glorified multisigs is ending. The era of cryptographic trust is upon us,” explained Buterin.
Buterin’s remarks underscore the significance of advancing cryptographic trust within the L2 space, highlighting the importance of decentralization and security in future developments.
As Base continues to lead the pack, it is evident that the L2 landscape is evolving rapidly. With Aerodrome emerging as the top protocol on Base L2, boasting an impressive $830 million TVL and showing a 5% increase in the last week, the platform’s growth trajectory is on a steady incline.
Image Source: DefiLlama
While Base celebrates its newfound position, Arbitrum faces challenges of its own. Despite a recent 2% increase in ARB price, the network is still recovering from an 80% crash. Recovery efforts, including token buybacks and strategic partnerships, are underway to stabilize the platform’s performance.
Image Source: BeInCrypto
As the competition between Base and Arbitrum unfolds, the evolving dynamics of the Ethereum L2 space continue to shape the future of decentralized finance and blockchain innovation.