Ethereum scaling solutions Optimism (OP) and Arbitrum (ARB) are leading the digital asset space being the only full-Ethereum Virtual Machine rollups to reach the “Stage 1” of decentralization. The stages were noted by Ethereum co-creator Vitalik Buterin who believes that all the developers should aim to achieve increased decentralization by the end of the year.
On the other hand, ZK-EVM rollups like Starknet have not yet reached the first stage of decentralization. Ethereum co-founder Vitalik Buterin expressed on X that he hopes to see a ZK-EVM rollup achieve the same level of success as Arbitrum and Optimism.
@Arbitrum and @Optimism continue to deserve praise for being the first full-EVM rollups to reach stage 1. Looking forward to seeing the first ZK-EVM rollup join them soon! pic.twitter.com/yyiWh6RKNp
— vitalik.eth (@VitalikButerin) August 6, 2024
In a blog post published shortly after the Dencun upgrade, which significantly reduced fees for Layer 2 rollups, the Ethereum co-founder argued that Ethereum must maintain strict standards to ensure protocols continue to develop sustainably. He added:
”By the end of the year, I think our standards should increase and we should only treat a project as a rollup if it has actually reached at least stage 1.”
According to Buterin, a Layer 2 network in Stage 1 is where a Layer 2 prioritizes efficient security and scaling features but lacks decentralization; full decentralization is achieved in Stage 2.
As per L2Beat, Arbitrum’s Total Value Locked (TVL) has dropped 17% in the past 24 hours and currently stands at $14.33 billion. On the other hand, the TVL of Optimism stands at $5.36 billion, down 16.38%. The native tokens of the protocols, OP and ARB, are up 12.47% and 5.95%, respectively and are trading at $1.27 and $0.5063, respectively.
The crypto market crash over the weekend has had a significant impact on OP, ARB, alongside leading altcoins and cryptocurrencies including Bitcoin and Ether. However, as per CoinMarketCap, the market is close to the $2 trillion level, up 3.87% in the past 24 hours.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.