Layer-2 Networks Forecast: Base Surpasses Arbitrum, Evading Vitalik Buterin's List of Predicted Failures
Base Steps Up as King of Ethereum's Layer 2s, Pushing Arbitrum Aside
In an unexpected twist, Base, developed by Coinbase, has bagged the crown, dethroning Arbitrum as the leading Ethereum Layer 2 scaling solution. This shift took place following Base's transition from a Stage 0 rollup to a Stage 1 on May 2025, marking a higher level of decentralization and security.
Data on the Rise
According to data from L2Beat, an analytics and research platform dedicated to Ethereum layer-2 scaling, Arbitrum One is no longer the largest optimistic rollup on Ethereum. Base has surpassed Arbitrum L2 by a staggering margin of over $710 million in total value secured (TVS). This impressive surge came after a $557 million increase in TVL.
From Training Wheels to Smart Contract Governance
Apart from overtaking Arbitrum, Base has also moved from Stage 0 to Stage 1, now featuring smart contract governance. However, a secure council remains in place to handle potential bugs, suggesting that while it has shed some training wheels, it still needs some supervision.
Setting Sail on a Creator Ecosystem
Base creator Jesse Pollak took to Twitter to express his pride, noting that while they are now the largest in TVS, it is still the beginning. Pollak pointed towards Base's vision of growing an on-chain creator ecosystem that fosters creativity and promotes virality.
Evading the Doomed List
This move also means Base has effectively escaped Vitalik Buterin's list of L2 networks doomed to fail unless they advance. In September 2021, Buterin had flagged a select group of L2 networks that he believed would perish if they didn't progress further.
Buterin's Vision of Cryptographic Trust
Buterin acknowledged Base's transition to a Stage 1 rollup and welcomed it to the club of full-EVM Stage 1 networks. However, he made it clear that he would only recognize L2 networks that reach Stage 1+ maturity, based on a decentralization scale. Buterin anticipates that the era of rollups being seen as glorified multisigs is ending, embracing instead the era of cryptographic trust.
Striving for 2025 Scaling
This alignment with Buterin's vision of advancing cryptographic trust comes as he proposed a roadmap for scaling Ethereum's L1 and L2 protocols in 2025, which includes incentivizing L2 alignment with Ethereum's ecosystem.
Battling the Storm from Arbitrum
While Base takes the lead, it's important not to forget Arbitrum's current struggles. The network is still recovering from an 80% crash, with key interventions including token buybacks and a recently withdrawn Nvidia accelerator program bid. Despite this, Arbitrum's ARB token has shown a 2% increase in the last 24 hours.
Exploring TonTrader, dYdX, Arkham, BingX, and HTX
As the landscape continues to shift, it's worth exploring various platforms such as TonTrader, dYdX, Arkham, BingX, and HTX to stay ahead of the game.
Disclaimer
Remember: Always do your own research (DYOR) and consult professionals before making any decisions based on this content. BeInCrypto adheres to the Trust Project guidelines, providing unbiased, transparent reporting.
Enrichment Data
Here are the key differences between Base and Arbitrum following Base's Stage 1 transition and recent market dominance:
1. Network Maturity and Architecture
- Base: recently graduated to Stage 1 EVM rollup (May 2025), with a centralized sequencer.
- Arbitrum: still evolving as a Stage 0 rollup with security anchored to Ethereum’s mainnet, using Optimistic Rollups with a real-world asset (RWA) chain.
2. Performance Metrics
- Throughput: Base's Time-to-Finality leads Ethereum L2s with 55 seconds, while Arbitrum boasts a peak capacity of 4,000 TPS and a 1-minute finality.
- Cost Efficiency: Arbitrum reduces gas fees by up to 95% compared to Ethereum, while Base's fees are competitive but not explicitly quantified.
3. Market Dominance
- TVL: Base's TVL surpassed Arbitrum's after a $557 million surge.
- Volume: Base leads in transaction volume.
4. Use Cases and Ecosystem
- Base: Focus on mainstream adoption via Coinbase’s user base with growth in DeFi and NFT activity.
- Arbitrum: a hub for developer activity, hosting major DeFi protocols and NFT platforms.
5. Governance and Tokens
- Base: no native token yet but plans may be underway.
- Arbitrum: ARB token for fees, staking, and governance.
6. Centralization Concerns
- Base: criticized for centralized sequencer control despite being a Stage 1 rollup.
- Arbitrum: more decentralized but still evolving.
- Base, developed by Coinbase, has taken the leading position from Arbitrum as the foremost Ethereum Layer 2 scaling solution.
- This shift occurred following Base's transition from a Stage 0 rollup to a Stage 1 on May 2025, indicating a higher level of decentralization and security.
- According to L2Beat, a platform dedicated to Ethereum layer-2 scaling, Base has surpassed Arbitrum L2 by a margin of over $710 million in total value secured (TVS).
- A significant increase in TVL led to this impressive surge for Base.
- Moving forward from Arbitrum, Base now features smart contract governance, although a secure council remains to handle potential bugs.
- Jesse Pollak, the Base creator, expressed pride on Twitter, stating that while they are now the largest in TVS, it is still the beginning.
- Base's vision includes growing an on-chain creator ecosystem that fosters creativity and promotes virality.
- By achieving Stage 1 maturity, Base has effectively escaped Vitalik Buterin's list of L2 networks doomed to fail unless they advance.
- As Buterin announced a roadmap for scaling Ethereum's L1 and L2 protocols in 2025, he anticipates that the era of rollups being seen as glorified multisigs is ending, embracing instead the era of cryptographic trust.
