Ethereum’s relative dominance amongst layer-1 (L1) blockchain networks has declined, leading to an “open race” to turn into the main Web3 platform, in accordance with Alex Svanevik, CEO of information service Nansen.
“If you’d asked me 3–4 years ago whether Ethereum would dominate crypto, I’d have said yes,” Svanevik stated throughout a panel dialogue on the LONGITUDE by Cointelegraph occasion. “But now, it’s clear that’s not what’s happening.”
Ethereum remains to be the preferred L1 community. According to information from DefiLlama, its roughly $52 billion in complete worth locked (TVL) represents 51% of cryptocurrency residing on blockchain networks.
However, Ethereum’s dominance has diminished sharply since 2021, when the L1 managed as a lot as 96% of combination TVL, the information exhibits.
“It’s an open race between multiple L1s for becoming the go-to platform for trading and broader blockchain use,” Svanevik stated.
“We’re seeing smaller chains grow extremely fast, and a group of five or six chains emerging as leaders. It’s an exciting time,” he stated.
Cointelegraph’s LONGITUDE is an occasion collection that brings collectively leaders and innovators from the blockchain and Web3 area for unique discussions.
Rise of Solana
Solana (SOL), another layer-1 recognized for sooner transactions and decrease charges than Ethereum, is in pole place to turn into Web3’s subsequent main chain, in accordance with the Nansen CEO.
“Solana has overtaken Ethereum on most onchain metrics — active addresses, transaction volume, even gas fees,” Svanevik stated. “Ethereum still leads in TVL, and stablecoin issuance is still strong, but Solana’s growth is undeniable.”
Meanwhile, dozens of smaller L1s are additionally vying for market share — and never all of them are gaining sustainable traction, Vardan Khachatryan, chief authorized officer of buying and selling platform Fastex, advised Cointelegraph throughout the panel.
“Unfortunately, what we see in actuality is that chains turn into common when they’re the hype of that individual bull run, new cash, airdrops, and many others., reasonably than sustained adoption,” Khachatryan stated.
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