Base overtakes Arbitrum to become the largest Ethereum Layer-2 (L2) scaling solution by total value secured (TVS). Developed by Coinbase, Base has not only surged ahead in value but also reached a new technical milestone—transitioning from a Stage 0 to a Stage 1 rollup.
Base Rises to Stage 1 and the Top Spot
In the L2Beat rankings, Base has surpassed Arbitrum One. A recent $557 million jump in total value locked (TVL) pushed its lead to over $710 million in TVS.
This momentum comes as Base transitions to Stage 1 maturity, meaning it now features smart contract-based governance. While a security council remains in place for emergencies, this marks a clear step toward greater decentralization.
Vitalik Buterin Endorses Base’s Progress
Ethereum co-founder Vitalik Buterin has long pushed for Layer-2s to move beyond centralized control. In September, he warned that L2s stuck in Stage 0 risk failure unless they evolve.
Base’s upgrade to Stage 1 effectively removes it from this risk category. Buterin welcomed the project with a message:
“Welcome to the full-EVM stage 1 gang Base.”
He described Stage 1 as a balanced decentralization milestone. It requires at least 26% of the security council to be independent of the rollup team, helping to shift L2 trust away from centralized multisigs and toward cryptographic systems.
Base’s Ecosystem Is Expanding Fast
This isn’t the first time Base has challenged Arbitrum. In September, Base’s TVL shot past $2 billion after 400% growth. At the time, it closed in on Arbitrum’s $2.6 billion lead.
Now, with the lead secured, Base continues to grow.
- Aerodrome leads Base’s ecosystem with $830 million in TVL.
- Other major protocols include Morpho, Aave, and Uniswap.
Base’s rise reflects broader success in Coinbase’s L2 strategy, which emphasizes on-chain creativity and mainstream adoption.
Arbitrum Still Struggling After Major Decline
While Base climbs, Arbitrum continues to recover from an 80% drop in value. Although its TVL remains high, key setbacks have included a failed bid for the Nvidia accelerator program.
Efforts to stabilize the network include token buybacks and renewed community engagement.
