Ethereum No Longer Reigns Supreme as Solana and Others Accelerate the Layer-1 Race

Ethereum No Longer Reigns Supreme as Solana and Others Accelerate the Layer-1 Race

LONGITUDE Panel Declares an End to Ethereum’s Layer-1 Monopoly in Web3 Ecosystem

Ethereum’s once-undisputed lead in the blockchain space is officially under threat. At the LONGITUDE by Cointelegraph event in Dubai, Nansen CEO Alex Svanevik told a panel audience that the age of Ethereum dominance is fading—and the race to lead Web3 is now “open.”

“If you’d asked me 3–4 years ago whether Ethereum would dominate crypto, I’d have said yes,” Svanevik stated. “But now, it’s clear that’s not what’s happening.”

From 96% to 51% — Ethereum’s Slide in Total Value Locked

Once commanding 96% of all value locked across layer-1 (L1) networks, Ethereum’s share has fallen to 51%, according to DeFiLlama. While the network still controls over $52 billion in total value locked (TVL)—more than any of its competitors—the erosion of its dominance signals a tectonic shift in blockchain infrastructure.

Other L1s are now emerging with speed, scalability, and efficiency as their core advantages, challenging Ethereum’s high fees and slower throughput.

Solana Gains Momentum as a Viable Alternative

Solana is currently leading the charge among the new wave of L1 challengers. With lower fees, faster transaction speeds, and growing usage, the network has outpaced Ethereum on several metrics including:

• Active addresses

• Transaction volume

• Gas fee efficiency

“Solana has overtaken Ethereum on most onchain metrics,” Svanevik emphasized. “Ethereum still leads in TVL and stablecoin issuance, but Solana’s growth is undeniable.”

Solana’s performance is giving rise to the notion that a multi-chain future, rather than Ethereum supremacy, may define Web3’s next chapter.

The Rise — and Risk — of Smaller Chains

Beyond Solana, a cluster of five or six L1 blockchains is emerging as legitimate contenders. However, not all are on solid footing.

Vardan Khachatryan, Chief Legal Officer at Fastex, cautioned that short-term hype, driven by airdrops and bull run momentum, often props up less sustainable chains.

“Chains become popular during hype cycles—not because of long-term adoption,” Khachatryan explained.

This pattern raises questions about user retention and real-world use cases, key ingredients for long-term success in the blockchain infrastructure wars.

What’s Next for Layer-1 Blockchains?

While Ethereum continues to serve as a cornerstone for DeFi and stablecoins, its relative decline opens new strategic opportunities for investors, developers, and enterprises betting on next-gen blockchain solutions.

The L1 space is no longer a foregone conclusion. It’s an open competition, and Ethereum’s future as the singular leader is no longer guaranteed.