Ethereum’s relative dominance amongst layer-1 (L1) blockchain networks has declined, leading to an “open race” to turn out to be the main Web3 platform, in line with Alex Svanevik, CEO of knowledge service Nansen.
“Should you’d requested me 3–4 years in the past whether or not Ethereum would dominate crypto, I’d have mentioned sure,” Svanevik mentioned throughout a panel dialogue on the LONGITUDE by Cointelegraph occasion. “However now, it’s clear that’s not what’s taking place.”
Ethereum is nonetheless the preferred L1 community. In response to knowledge from DefiLlama, its roughly $52 billion in whole worth locked (TVL) represents 51% of cryptocurrency residing on blockchain networks.
Nonetheless, Ethereum’s dominance has diminished sharply since 2021, when the L1 managed as a lot as 96% of mixture TVL, the information reveals.
“It’s an open race between a number of L1s for changing into the go-to platform for buying and selling and broader blockchain use,” Svanevik mentioned.
“We’re seeing smaller chains develop extraordinarily quick, and a bunch of 5 or 6 chains rising as leaders. It’s an thrilling time,” he mentioned.
Cointelegraph’s LONGITUDE is an occasion collection that brings collectively leaders and innovators from the blockchain and Web3 area for unique discussions.
Rise of Solana
Solana (SOL), an alternate layer-1 recognized for quicker transactions and decrease charges than Ethereum, is in pole place to turn out to be Web3’s subsequent main chain, in line with the Nansen CEO.
“Solana has overtaken Ethereum on most onchain metrics — lively addresses, transaction quantity, even gasoline charges,” Svanevik mentioned. “Ethereum nonetheless leads in TVL, and stablecoin issuance is nonetheless robust, however Solana’s development is plain.”
In the meantime, dozens of smaller L1s are additionally vying for market share — and never all of them are gaining sustainable traction, Vardan Khachatryan, chief authorized officer of buying and selling platform Fastex, instructed Cointelegraph throughout the panel.
“Sadly, what we see in actuality is that chains turn out to be common when they’re the hype of that individual bull run, new cash, airdrops, and so on., slightly than sustained adoption,” Khachatryan mentioned.
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