According to Cointelegraph, Nansen CEO Alex Svanevik stated that Ethereum's relative dominance in Layer-1 blockchain networks is declining as competition among Web3 platforms intensifies. Although Ethereum remains the most popular L1 network, DefiLlama data shows its total locked value (TVL) is approximately $52 billion, accounting for 51% of the cryptocurrency market. However, since 2021, Ethereum's dominance has significantly decreased, when it controlled 96% of the TVL.
Svanevik pointed out that multiple L1s are competing to become the preferred platform for transactions and blockchain applications. Solana is leading due to its fast transaction speed and low fees, surpassing Ethereum in metrics such as active addresses and transaction volume.
