Ethereum, long regarded as the foundation of decentralized applications, faces increasing competition in the Layer-1 market. According to Alex Svanevik, CEO of Nansen, the current landscape offers numerous alternatives.
Competition Among Layer-1 Platforms
Once holding about 96% share of total locked value among all Layer-1 platforms in 2021, Ethereum now commands just over 51% of that market, according to DefiLlama data.
Solana Outpaces Ethereum in On-Chain Activity
Solana, optimized for fast and low-cost transactions, has already surpassed Ethereum in several metrics, including active addresses and transaction throughput. Svanevik emphasizes that 'Solana is now in pole position,' highlighting the growing interest from developers and investors.
Hype vs. Sustainability in the L1 Race
However, not every new chain is built to last. Vardan Khachatryan, chief legal officer at Fastex, points out that many new projects achieve success based more on temporary hype than on real utility. 'Too often, popularity is a product of the moment — airdrop farming, speculative coins — rather than sustained use,' Khachatryan says.
While Ethereum may have lost its absolute leadership, it still serves as an important benchmark in the Layer-1 world, but it must adapt to the rapidly changing competitive landscape.
