- Ethereum‘s market dominance has significantly decreased from 96% in 2021 to about 51% of total value locked across blockchain networks today.
- According to Nansen CEO Alex Svanevik, multiple layer-1 blockchains are now in an “open race” to become the leading Web3 platform.
- Solana is gaining momentum as a potential competitor to Ethereum, surpassing it in metrics like active addresses and transaction volume.
The dominance of Ethereum among layer-1 blockchain networks has significantly declined, creating what Nansen CEO Alex Svanevik describes as an “open race” for Web3 platform leadership. This assessment was shared during a panel discussion at the LONGITUDE by Cointelegraph event recently held in Dubai.
“If you’d asked me 3–4 years ago whether Ethereum would dominate crypto, I’d have said yes,” stated Svanevik. “But now, it’s clear that’s not what’s happening.”
While Ethereum remains the most prominent layer-1 network with approximately $52 billion in total value locked (TVL), representing 51% of cryptocurrency on blockchain networks according to DefiLlama data, this marks a dramatic decline from its 2021 position when it controlled up to 96% of aggregate TVL.
“It’s an open race between multiple L1s for becoming the go-to platform for trading and broader blockchain use,” Svanevik explained, adding that “We’re seeing smaller chains grow extremely fast, and a group of five or six chains emerging as leaders. It’s an exciting time.”
Solana’s Growing Challenge
According to Svanevik, Solana (SOL) is positioned to potentially become Web3’s next leading chain. Known for faster transactions and lower fees compared to Ethereum, Solana has made significant progress in key metrics.
“Solana has overtaken Ethereum on most onchain metrics — active addresses, transaction volume, even gas fees,” the Nansen CEO noted. “Ethereum still leads in TVL, and stablecoin issuance is still strong, but Solana’s growth is undeniable.”
Sustainability Concerns for Emerging Chains
Not all emerging layer-1 blockchains are gaining sustainable traction, according to Vardan Khachatryan, chief legal officer of trading platform Fastex, who also participated in the panel discussion.
“Unfortunately, what we see in reality is that chains become popular when they are the hype of that particular bull run, new coins, airdrops, etc., rather than sustained adoption,” Khachatryan explained to Cointelegraph.
The LONGITUDE event series by Cointelegraph brings together leaders and innovators from the blockchain and Web3 sectors for exclusive discussions on industry developments and future directions.
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