Ethereum is facing stiff competition in the first-level blockchain (L1) space as its dominance declines, and other platforms compete for supremacy in the Web3 arena. Alex Svanevik from Nansen highlighted this shift at the Cointelegraph event, noting that Ethereum has dropped from controlling 96% of total value locked (TVL) in 2021 to just 51% now. This has opened up a race among several first-level 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, surpassing it in key metrics. While Ethereum maintains its lead in TVL issuance and stablecoins, Solana's growth is significant. Smaller L1s are also participating in this process, but not all of them show sustained growth, and some gain momentum during 'bullish' periods due to hype rather than real adoption.

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