According to Cointelegraph, Nansen CEO Alex Svanevik stated that Ethereum's relative dominance in Layer-1 blockchain networks is declining amid intensified competition for Web3 platforms. 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 several L1s are competing to become the preferred platform for transactions and blockchain applications. Solana is leading due to its fast transaction speeds and low fees, having surpassed Ethereum in metrics such as active addresses and transaction volume.
