Ethereum is no longer the clear leader in layer ones, according to the CEO of Nansen at the LONGITUDE event
Ethereum's long-standing dominance as the leading layer one (L1) network in the blockchain world is diminishing, with a new generation of rapidly growing and high-performing competing networks emerging, according to Alex Svanevik, CEO of Nansen. During the LONGITUDE session organized by Cointelegraph, Svanevik announced that the race for layer ones is now "open," with no network enjoying uncontested leadership in the web 3 space.
Ethereum's dominance in total value locked (TVL) drops from 96% to 51%
In 2021, Ethereum controlled approximately 96% of the total value locked (TVL) across all blockchain networks, but it now represents only 51%, according to DeFi Llama data. Although it remains the number one chain in terms of total value locked (around $52 billion), its relative dominance has weakened as alternatives attract users with higher speeds, lower costs, and innovative incentives.
Svanevik said: "If you had asked me 3-4 years ago whether Ethereum would dominate the crypto world, I would have said yes. But now, it's clear that this is not what's happening."
Solana stands out as a strong competitor to Ethereum
Among the rising networks, Solana (SOL) stands out as the leading competitor in the layer one category. Thanks to its higher throughput and significantly lower transaction costs, Solana has surpassed Ethereum in several on-chain metrics, according to Svanevik.
He added: "Solana has surpassed Ethereum in most on-chain metrics — such as active addresses and transaction volume, and even gas fees." While Ethereum still maintains its superiority in total value locked and stablecoin issuance, the explosive growth of the Solana ecosystem challenges Ethereum's status as the preferred network for developers and traders.
Smaller chains are competing, but the hype outweighs real adoption
Other chains like Avalanche, Sui, Aptos, and Sei are competing for market shares. However, Vardan Khachaturyan, the legal president of Fastics, warned that not all of them are achieving sustainable penetration.
Khachaturyan noted during the session: "Unfortunately, what we are actually seeing is that some chains gain popularity when they are in vogue during that limited market uptrend — like new coins or free distributions — and not due to sustainable adoption."
Despite the proliferation of layer one chains, only a few are showing signs of real growth in long-term user retention, making the distinction between market hype and genuine adoption by developers more important than ever.
The evolution of web 3 architecture continues
Insights from LONGITUDE indicate that Ethereum's path to dominance is no longer guaranteed, and the blockchain landscape is becoming increasingly fragmented. With 5 to 6 chains emerging as legitimate competitors, the race to lead web 3 architecture is wide open — a shift that could reshape user behavior, investment flows, and developer incentives during the next market cycle, according to a Cointelegraph report.
