Base Surpasses Arbitrum with $710M Lead and Escapes Vitalik’s Warning

Key Points

• Base Surpasses Arbitrum with $710M Lead and Escapes Vitalik’s Warning
• Base overtakes Arbitrum as largest Ethereum Layer-2
•  Achieves Stage 1 maturity, avoiding Vitalik’s “doomed” list
•  Total value secured (TVS) jumps by $557 million
•  Aerodrome, Morpho, Aave, and Uniswap drive Base’s growth

Base, Coinbase’s Layer-2 (L2) blockchain, has officially overtaken Arbitrum to become the largest Ethereum scaling solution. Following a remarkable $557 million surge in Total Value Locked (TVL), Base now holds a $710 million lead in total value secured (TVS), according to L2Beat.

But it’s not just about the numbers. Base has also advanced from Stage 0 to Stage 1 rollup maturity, a framework designed by Ethereum co-founder Vitalik Buterin. Stage 1 rollups feature decentralized smart contract governance while retaining a security council to manage potential bugs — a major step up from the centralized Stage 0 phase.

Ethereum L2 rollups. Source: L2Beat – Techtoken

“Proud that Base is now Stage 1 — and #1 by TVS. But it’s still day one. Time to bring the world on-chain,” said Jesse Pollak, Base’s creator.

This major milestone has allowed Base to escape Vitalik’s warning list — the group of Layer-2 solutions he predicted would fail unless they matured rapidly. Welcoming Base’s progress, Buterin tweeted, “Welcome to the full-EVM Stage 1 gang Base.”

Vitalik’s criteria for success prioritize decentralization. Stage 1 rollups must ensure that at least 26% of their security council is independent of the rollup’s core team and require a 75% council consensus to override proof systems. “The era of rollups being glorified multisigs is ending. The era of cryptographic trust is upon us,” Buterin explained.

proud that @base is now stage 1 — and #1 by TVS

but it’s still day one. time to bring the world onchain. pic.twitter.com/LcVAEPZfgr

— jesse.base.eth (@jessepollak) May 1, 2025

For those tracking how Ethereum narratives evolve, check out Ethereum faces a narrative crisis — a crucial backdrop to why Layer-2 success stories like Base matter.

Base Ecosystem Thrives While Arbitrum Struggles

The Base ecosystem is thriving, drawing major decentralized finance (DeFi) protocols. Aerodrome leads with $830 million in TVL, followed by Morpho, Aave, and Uniswap. Base’s seamless integration with the Coinbase platform and developer-friendly tools have made it a top choice for builders and users alike.

Welcome to the full-EVM stage 1 gang @base! https://t.co/pcNJYI1Xwm

— vitalik.eth (@VitalikButerin) April 30, 2025

Meanwhile, Arbitrum is still reeling from an 80% value crash. Recovery efforts, including token buybacks and a failed bid to join the Nvidia accelerator program, haven’t closed the gap. While ARB prices have seen a modest 2% increase to $0.33, Base’s lead continues to grow.

I take this seriously. Starting next year, I plan to only publicly mention (in blogs, talks, etc) L2s that are stage 1+, with *maybe a short grace period* for new genuinely interesting projects.

It doesn’t matter if I invested, or if you’re my friend; stage 1 or bust.

Multiple… pic.twitter.com/4cGxgsfmUc

— vitalik.eth (@VitalikButerin) September 12, 2024

This shift reflects a broader move toward Ethereum Layer-2s that align with Vitalik’s vision: staking, fee burning, and supporting public goods. It also comes as Bitcoin and Ethereum options expire, introducing more volatility into the broader crypto market. You can follow those developments here.

Base L2 Protocols. Source: DefiLlama – Techtoken

What’s Fueling Base’s Growth?

Base’s rapid rise isn’t just about surpassing Arbitrum. A few key factors are driving its dominance:

1. Strong Ecosystem Partnerships: Aerodrome, Morpho, Aave, and Uniswap have become core parts of Base’s DeFi infrastructure. These partnerships mirror other strategic alignments, such as the Solana staking market cap growth — where ecosystems are expanding by building trust and utility.

2. Developer and User Adoption: Base’s easy onboarding through Coinbase gives it a unique advantage over competitors, bringing in both users and developers at scale.

3. Resilience to Market Manipulation: Unlike smaller protocols vulnerable to market schemes — like the recent Alpaca market manipulation that triggered a massive price surge warning — Base’s deeper liquidity and ecosystem strength help stabilize it against such risks.

4. Future-Proof Governance: By reaching Stage 1, Base now enjoys decentralized governance with a smart contract-based model, offering more transparency and security than many rivals.

Arbitrum (ARB) Price Performance. Source: Techtoken

As crypto investors and enthusiasts look for solid Layer-2 options, Base is becoming not just a leader but also a strategic investment opportunity. If you’re exploring Layer-2s and market trends, don’t miss our insights on strategy stock surges shaping the broader tech and crypto sectors.