Ethereum is facing fierce competition in the Layer 1 (L1) blockchain space, with its dominance declining as other platforms vie for the top spot in the Web3 arena. Alex Svanevik from Nansen highlighted this shift at a Cointelegraph event, noting that Ethereum's total value locked (TVL) dominance has dropped from 96% in 2021 to just 51% now. This has sparked competition among multiple L1 networks to become the preferred platform for transactions and broader blockchain applications. Solana (SOL) has emerged as a strong competitor, leveraging faster transactions and lower fees, surpassing Ethereum on key metrics. While Ethereum maintains its lead in TVL and stablecoin issuance, Solana's growth is remarkable. Smaller L1s are also in the mix, but not all are achieving sustainable growth, with some gaining traction during bullish periods due to hype rather than actual adoption.

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