Nansen's CEO states that the leadership of first-layer blockchain networks is now an "open race".
Alex Svanevik, CEO of data service company Nansen, says that Ethereum's relative dominance in Layer 1 (L1) blockchain networks has declined, triggering an "open race" to become the leading Web3 platform.
"If you had asked me three or four years ago whether Ethereum would dominate the crypto market, I would have said yes," Svanevik said during a panel discussion at Cointelegraph's LONGITUDE event. "But now, it's clearly not the case."
Ethereum remains the most popular L1 network. According to defillama, its total locked value (TVL) is approximately $52 billion, accounting for 51% of cryptocurrencies on blockchain networks.
However, data shows that Ethereum's dominance has sharply declined since 2021, when L1 controlled up to 96% of total TVL.
Cointelegraph panel members at the LONGITUDE event in Dubai. Source: Cointelegraph
Svanevik stated: "It's an open race among multiple L1s aimed at becoming the preferred platform for transactions and broader blockchain usage."
"We see small chains developing very rapidly, with five or six chains rising to become leading enterprises. It's an exciting moment," he said.
Cointelegraph's LONGITUDE is an event series that brings together leaders and innovators in the blockchain and Web3 space for exclusive discussions.
TVL distribution among blockchain networks. Source:defillama
Solana's Rise
Solana is an alternative Layer-1 protocol known for faster transaction speeds and lower fees compared to Ethereum, and according to Nansen's CEO, Solana is poised to become the next leading public chain for Web3.
"Solana outperforms Ethereum on most chain metrics—active addresses, transaction volume, and even gas fees," Svanevik stated. "Ethereum still leads in total locked value (TVL) and stablecoin issuance remains strong, but Solana's momentum is undeniable."
Meanwhile, Vardan Khachatryan, Chief Legal Officer at trading platform Fastex, told Cointelegraph during the panel discussion that dozens of smaller L1s are also vying for market share, but not all L1s have gained sustainable appeal.
Khachatryan stated: "Unfortunately, what we see in reality is that blockchains are popular because of hype from a bull market, new coins, airdrops, etc., rather than sustained adoption."
