Ethereum’s relative dominance amongst layer-1 (L1) blockchain networks has declined, leading to an “open race” to turn into the main Web3 platform, in keeping with Alex Svanevik, CEO of information service Nansen.
“If you happen to’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 continues to be the preferred L1 community. In keeping with information from DefiLlama, its roughly $52 billion in whole worth locked (TVL) represents 51% of cryptocurrency residing on blockchain networks.
Nevertheless, Ethereum’s dominance has diminished sharply since 2021, when the L1 managed as a lot as 96% of mixture TVL, the info exhibits.
“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 – 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 identified for quicker transactions and decrease charges than Ethereum, is in pole place to turn into Web3’s subsequent main chain, in keeping with the Nansen CEO.
“Solana has overtaken Ethereum on most onchain metrics — energetic addresses, transaction quantity, even fuel charges,” Svanevik mentioned. “Ethereum nonetheless leads in TVL, and stablecoin issuance continues to be robust, however Solana’s development is simple.”
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 in the course of the panel.
“Sadly, what we see in actuality is that chains turn into standard when they’re the hype of that exact bull run, new cash, airdrops, and many others., moderately than sustained adoption,” Khachatryan mentioned.
Journal: ZK-proofs are bringing sensible contracts to Bitcoin — BitcoinOS and Starknet
