Secret Network, a privacy-focused layer-1 blockchain based in the Cosmos ecosystem since 2020, has proposed migrating to Arbitrum, an Ethereum layer-2 network. The team stated that the decision is not just about liquidity or market trends, but stems from an increasingly concrete security threat: legacy code becoming easier to dissect and exploit with the help of artificial intelligence.
Legacy Code Becomes an Easy Target in the AI Era
“Security risks are what we take most seriously,” the Secret Network team stated in its official announcement. They noted that advanced AI models - including Anthropic’s Claude Mythos 5 - have significantly streamlined finding and exploiting vulnerabilities in long-untouched code. The concern is grounded in recent events: in June, the IBC bridge between Axelar and Secret was breached via an “infinite mint” bug, resulting in the loss of $4.7 million in locked bridge assets - though the native SCRT token itself was not directly affected.
Rather than remaining with Cosmos tooling that the team described as “increasingly shaky”, Arbitrum is presented as a safer harbor, offering deep liquidity, mature wallet and exchange support, and thousands of active builders. Under the plan, a snapshot of SCRT balances will be taken on September 1, serving as the basis for deploying the new ERC-20 SCRT contract on Arbitrum.
Cosmos Projects Depart One by One
Secret is not the first project to depart. NilChain moved to Ethereum back in February, preceded by Noble in January, while Sei Network completed a full transition from Cosmos to the EVM in June - completely shuttering its Cosmos transaction layer. Total value locked across the Cosmos ecosystem currently stands around $2 billion, down 88% from its 2021 bull market peak, with Secret’s own Cosmos TVL dwindling to just $1.3 million - a sharp contrast to the $17.4 billion in total value secured held by Arbitrum as the largest layer-2 network.
The market reacted swiftly and negatively to the proposal: SCRT plummeted 24% in 24 hours to 4.1 cents, leaving it more than 99% below its 2021 all-time high.
When Staying Poses Greater Risk Than Moving
SCRT’s immediate price plunge following the proposal illustrates market unease over such a drastic shift in direction - yet ironically, that very reaction validates Secret’s case for moving. A network with dwindling TVL and departing builders has little justification to stay in its legacy home out of historical loyalty alone. The real question is not whether Secret will thrive on Arbitrum, but whether this Cosmos-to-Ethereum exodus will continue until the original ecosystem is left hollowed out.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
