Ethereum's relative dominance on Layer-1 (L1) blockchain networks refused, resulting in an “open race” to be the leading web3 platform, according to Alex Svanevik, CEO of Data Service Nansen.
“If you ask me 3-4 years ago if Ethereum dominates the crypto, I will say yes,” Svanevik said in a panel discussion at the longitude of the cointelegraph event. “But now, it's obvious that that's not the case.”
Ethereum is still the most popular L1 network. According to data from Defillama, approximately $ 52 billion in total amount locked (TVL) represents 51% of cryptocurrency living on blockchain networks.
However, Ethereum's dominance has been reduced strongly since 2021, when L1 controls 96% of the combined -with TVL, the data shows.
“It's an open race between many L1s for being a go-to platform for trading and greater use of blockchain,” Svanevik said.
“We see a smaller chain growing very fast, and a group of five or six chains emerging as leaders. This is an exciting time,” he said.
Cointelegraph's longitude is an event series that combines leaders and innovations from the blockchain and web3 space for exclusive discussions.
Solana increases
Solana (Sol), an alternative layer-1 known for faster transactions and lower fees than Ethereum, is in the pole position to become the next leading web3 chain, according to the Nansen CEO.
“Solana has reached Ethereum in most onchain metrics – active addresses, volume of transactions, even gas fees,” Svanevik said. “The Ethereum is still leading TVL, and Stablecoin's issuance is still strong, but Solana's growth is undeniable.”
Meanwhile, twelve smaller L1s also care for market sharing -and not all of them are getting sustainable traction, Vardan Khachatryan, chief legal official Fastx trading platform, said the Cointelegraph said during the panel.
“Unfortunately, what we see in the truth is that chains become popular when they are the hype of a particular bull run, new coins, airdrops, etc., rather than long adoption,” Khachatryan said.
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