Synthetix Moves Away from Arbitrum Towards Base
In a significant move for the DeFi sector, Synthetix's Perpetuals trading platform on Arbitrum has transitioned to a "close-only" mode. This means that traders on Arbitrum can no longer open new positions, and are advised to migrate their existing positions to the Base network [1].
This shift in strategy is part of a planned sunsetting of the Arbitrum Perpetuals market in favor of focusing on Base, which is becoming the primary Layer 2 environment for Synthetix Perpetuals trading.
The Base platform, backed by crypto exchange Coinbase, is built on the OP Stack architecture from Optimism. It is not associated with the perpetual futures category transition on Synthetix, nor is it connected to the shift in Synthetix's product strategy towards vertical integration.
In contrast to Arbitrum, the Base ecosystem is currently leading in total value locked (TVL). While specific numbers for TVL are not explicitly provided, the strategic pivot by Synthetix and the community direction indicate that Base is becoming the preferred chain for derivatives and DeFi activity, overtaking Arbitrum in this usage metric [1].
The daily transaction volume on Base is also increasing, supported by growing DeFi activity and new protocol migration such as Synthetix Perpetuals. Arbitrum, on the other hand, is experiencing a decline in this metric due to the sunsetting of key protocols like Synthetix Perpetuals.
Similarly, the number of active addresses on Base is rising with ecosystem expansion and new user onboarding focused on Base. Arbitrum, however, is either stable or shrinking due to migration and reduced new trading activity on Arbitrum Perpetuals.
Perps, a decentralized platform for trading perpetual futures, is built on the Synthetix protocol and operates on Base and Arbitrum, L2 solutions on top of Ethereum using optimistic rollups. Users can trade synthetic assets with leverage on Perps.
This strategic shift aligns with Synthetix's roadmap and community input as of early 2025, marking Base as the future hub for their Perpetuals derivatives. The launch of Synthetix's third version occurred on the Base platform in January 2024. Synthetix is phasing out perpetual futures based on Arbitrum's L2 solution.
In conclusion, the transition of Synthetix Perpetuals to Base marks a significant shift in the DeFi landscape, with Base emerging as the preferred choice for derivatives and DeFi activity. As more exact TVL or transaction data becomes available, it could provide a more quantitative comparison, but the current state clearly favors Base after Arbitrum Perpetuals' transition to close-only mode.
[1] Data sourced from Synthetix official announcements and community discussions.
What is the impact of Synthetix's transition of Perpetuals trading from Arbitrum to Base on the DeFi sector? This shift in strategy could potentially position Base as the preferred choice for derivatives and DeFi activity, overtaking Arbitrum in terms of total value locked (TVL) and daily transaction volume, as indicated by the rising number of active addresses on Base and the decline experienced by Arbitrum due to the sunsetting of key protocols like Synthetix Perpetuals. Furthermore, the strategic pivot by Synthetix and the growing DeFi activity on Base could potentially attract more finance and technology-oriented businesses to invest in and leverage the Base ecosystem.
