TLDR
- Vitalik Buterin argues that Base’s reliance on corporate control undermines Ethereum’s vision of decentralized scaling.
- Base’s centralized model earns substantial revenue but faces challenges from Ethereum’s evolving Layer-1 scaling efforts.
- Buterin suggests Layer-2 solutions must prioritize decentralization and interoperability, beyond just cheaper scaling.
- Coinbase faces pressure to balance regulation needs with Ethereum’s new roadmap and decentralization goals.
Ethereum’s co-founder, Vitalik Buterin, recently criticized Coinbase’s corporate-backed Base network for its increasing dominance in the Layer-2 space. This critique highlights ongoing debates about the role of centralized actors in the Ethereum ecosystem as Layer-2 solutions grow in popularity. Base, which launched in 2023, now accounts for nearly 60% of the total revenue in the Layer-2 sector. Buterin’s remarks challenge the network’s centralized control and its potential risks for Ethereum’s future scalability.
Coinbase’s Base Network and its Role in Layer-2 Growth
Base has quickly become one of the most prominent Layer-2 solutions, securing over $11 billion in total value locked (TVL) as of early 2026. Despite its success, Base’s growth is heavily influenced by Coinbase’s corporate strategies, raising questions about the long-term sustainability of such centralized solutions.
In 2025 alone, Base generated over $75 million in revenue, significantly outpacing many other Layer-2 projects. However, this revenue is primarily driven by centralized control, with Coinbase holding critical oversight over transaction sequencing and network upgrades.
🧠 Vitalik: L2s Must Evolve Beyond “Scaling Ethereum”@VitalikButerin said Layer 2s should no longer be viewed as @ethereum's “branded shards,” as Ethereum is now scaling directly with low fees and higher gas limits ahead.
He argued L2s must differentiate beyond scaling,… pic.twitter.com/J5HO5vODJg
— ME Group (@MetaEraHK) February 4, 2026
Base’s model, which depends on centralized sequencers, has sparked concerns from Ethereum’s community about its alignment with the broader decentralized vision. Vitalik Buterin’s recent comments suggest that the rollup-centric model that once served as a pathway to scaling Ethereum now needs to evolve.
Buterin has pointed out that, while Base meets many of the maturity criteria required for a Layer-2 solution, it falls short in terms of decentralization and interoperability. This challenge is especially crucial as Ethereum itself scales, lowering transaction costs and threatening the current business models of Layer-2 networks like Base.
Ethereum’s Layer-1 Scaling Efforts Pose Challenges for Base
Ethereum’s ongoing efforts to reduce transaction costs and improve scalability are putting pressure on Layer-2 solutions. In January 2026, Ethereum activated its Fusaka upgrade, which enhances the data capacity for rollups, including Base.
This development lowers the cost of using Ethereum’s Layer-1, which could reduce the demand for Layer-2 networks offering cheaper alternatives. Base’s revenue model, which is heavily reliant on providing cheaper execution, could be less compelling if Ethereum continues to scale efficiently on its own.
For Coinbase, this evolving Ethereum upgrade introduces a double-edged sword. On one hand, the cost savings from cheaper Ethereum transactions benefit Base’s users and applications. On the other hand, as Ethereum becomes more affordable and efficient, the need for separate Layer-2 solutions like Base could diminish.
The competitive advantage that Base currently enjoys may erode if Ethereum continues to optimize its transaction costs, ultimately making “cheaper scaling” a less viable business model.
The Future of Base and the Growing Debate on Decentralization
Buterin’s critique is rooted in the long-term philosophy of Ethereum and its goal of achieving true decentralization. He has emphasized that many Layer-2 solutions, including Base, have not fully embraced the decentralized ideals that Ethereum aims to promote.
The reliance on multisig wallets and centralized governance structures, such as a security council for upgrades, poses risks for user autonomy. Additionally, the possibility of centralized entities like Coinbase maintaining significant control over transaction sequencing further undermines the trustless nature of Ethereum.
As Ethereum’s Layer-1 scalability continues to improve, Buterin’s stance on Layer-2s is evolving. He now advocates for rollups to go beyond just providing cheaper scaling and focus more on decentralization, security, and interoperability.
This new roadmap may challenge Coinbase’s model, as it faces the growing pressure to decentralize control over the Base network. Coinbase must navigate these changes while balancing the regulatory needs of a publicly traded company and the demands for greater decentralization within the Ethereum ecosystem.
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