Solana Co-Founder Anatoly Yakovenko Challenges Ethereum’s Vitality Amid Base Layer 2 Surge

Anatoly Yakovenko, co-founder of solana, recently sparked a debate concerning the sustainability and utility of the ethereum network in the absence of Base, a Layer 2 scaling solution. His remarks come as Base has demonstrated remarkable growth, particularly in terms of user engagement and transaction volumes.

Base, a Layer 2 solution integrated with Coinbase, has experienced unprecedented growth in several key metrics, including active addresses, transaction counts, and throughput, which have all reached new all-time highs. The platform’s stablecoin market capitalization and total value locked (TVL) are also at their highest levels, signaling an upward trajectory in its adoption and utility.

The integration with Coinbase, which boasts an extensive user base, has significantly contributed to the demand for Base, fueling its rise in the aforementioned metrics. The surging activity on Base is also partly due to the popularity of meme coins like MOG and BRETT. These coins have gained traction and are approaching the top 100 cryptocurrencies by market capitalization.

According to data from DefiLlama, Aerodrome Finance has been instrumental in the boost of Base’s TVL, with trading of meme coins being a major factor. The platform has contributed to approximately $1.4 billion in TVL on Base Layer 2, underscoring its role as a driving force behind the rapid expansion.

In light of Base Layer 2’s impressive performance, Yakovenko provocatively stated, “So basically without Base, Ethereum ecosystem would be dead in the water right now.” His comment highlights the reliance of Ethereum on Layer 2 solutions for maintaining its competitive edge in the blockchain space.

Contrasting this viewpoint, Lily Liu, an on-chain economist, pointed out potential inaccuracies in how active addresses are being represented. Liu noted that Solana reports approximately 101 million monthly active addresses, significantly more than the 22 million reported by Base, indicating that the visualization might not accurately capture the ecosystem’s activity levels.

Liu suggested a more precise method of data presentation, advocating for a single bar chart with separate shading for EVM and non-EVM bars to facilitate clearer comparisons. She also noted that the NEAR Protocol surpasses Base with 31 million monthly active addresses, indicating that claims of Base and Solana having the highest monthly active addresses might overlook NEAR’s performance.

The rise of Layer 2 solutions like Base and their growing ecosystems hint at a shifting dynamic within the broader blockchain landscape. These platforms are evolving into ecosystems with distinct communities and economic activities, differentiating themselves from Ethereum’s primary network.

Ethereum, on the other hand, has faced certain challenges following its Dencun upgrade, including an inflationary supply and declining revenues. Meanwhile, Base Layer 2’s ascent has been notable, capturing a significant share of transactions and revenues, thus positioning itself as a formidable contender among Ethereum’s Layer 2 solutions.

As of the latest data, Ethereum (eth) is priced at approximately $2,650, reflecting a modest 7-day increase of about 2.5%. The 24-hour trading volume has surged by 67%, reaching $19.5 billion, indicating heightened trading activity and investor interest.

Looking at the broader context, Anatoly Yakovenko has also recently highlighted the fundamental differences between Solana and Ethereum. Despite Solana’s technological advantages, it has not yet garnered the same level of institutional attention as Ethereum. Yakovenko attributes this to the differing scaling approaches of the two platforms, with Solana focusing on hardware scaling, whereas Ethereum emphasizes software solutions.

In summary, the evolving dynamics within the blockchain ecosystem underscore the importance of Layer 2 solutions like Base in maintaining Ethereum’s utility and competitiveness. As these solutions continue to grow and differentiate themselves, they are likely to play an increasingly critical role in the future of blockchain technology.