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.
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