Ethereum faces stiff competition in the first-layer (L1) blockchain space as its dominance decreases and other platforms compete for primacy in the Web3 arena. Alex Svanevik from Nansen highlighted this shift at the Cointelegraph event, noting that Ethereum has dropped from controlling 96% of the total value locked (TVL) in 2021 to just 51% now. This has opened up a race among several first-layer networks to become the best platform for trading and broader blockchain applications. Solana (SOL) is becoming a strong competitor with faster transactions and lower fees than Ethereum, outperforming it in key metrics. Although Ethereum retains leadership in TVL issuance and stablecoins, Solana's growth is significant. Smaller L1s are also participating in this process, but not all of them show sustainable growth, and some gain traction during 'bull' periods due to hype rather than real adoption.

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