Ethereum is facing intense competition in the layer 1 (L1) blockchain space as its dominance diminishes and other platforms compete for the top spot in the web 3.0 arena. Alex Svanevik from Nansen highlighted this shift at a Cointelegraph event, pointing out that Ethereum, which controlled 96% of the total value locked (TVL) in 2021, now holds only 51%. This has sparked a competition to become the preferred platform for transactions and a wide range of blockchain applications among various L1 networks. Solana (SOL) has emerged as a strong competitor, surpassing Ethereum with faster transaction speeds and lower fees on key metrics. While Ethereum maintains its lead in TVL and stablecoin issuance, Solana's growth is significant. Although there are smaller L1s, not all are demonstrating sustainable growth, and some are gaining traction during bullish periods due to hype rather than actual adoption.

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