As Ethereum's position in the cryptocurrency space weakens, a competitive new market emerges among Layer-1 blockchains, according to Nansen's CEO Alex Svanevik.
Decline of Ethereum's Dominance
Alex Svanevik stated that Ethereum's relative dominance among L1 blockchains has fallen, leading to an 'open race' to become the leading Web3 platform. 'If you’d asked me 3–4 years ago whether Ethereum would dominate crypto, I’d have said yes,' he noted. Despite this, Ethereum remains the most popular L1 network, controlling about 51% of the total cryptocurrency on blockchain networks.
Rising Popularity of Solana
Svanevik emphasized that Solana, an alternative L1 known for faster transactions and lower fees, is well positioned to become the next leading Web3 chain. 'Solana has overtaken Ethereum on most onchain metrics — active addresses, transaction volume, even gas fees,' he said.
State of Other Smaller L1s
The state of smaller L1s is also of interest. According to Vardan Khachatryan, chief legal officer of trading platform Fastex, not all new chains gain sustainable popularity right away. 'Unfortunately, what we see in reality is that chains become popular when they are the hype of that particular bull run, new coins, airdrops, etc., rather than sustained adoption,' he reflected.
Competition among Layer-1 blockchains is becoming increasingly fierce, and success will depend on the platforms' ability to achieve sustainable growth and community engagement.
