According to Alex Svanevik, CEO of Data Service Nansen, Ethereum's relative dominance between blockchain networks of Layer-1 (L1) has declined, which meant that an “open race” becomes the leading web3 platform.
“If they’d asked me 3 to 4 years ago whether Ethereum would dominate crypto, I might have said,” said Svanevik during a panel discussion within the event of a slowness by CoinTelegraph event. “But now it is evident that that doesn't occur.”
Ethereum remains to be the most well-liked L1 network. According to Defillama, the whole value of around 52 billion US dollars (TVL) corresponds to 51% of the cryptocurrency which might be situated in blockchain networks.
However, the dominance of Ethereum has decreased greatly since 2021 when the L1 controlled as much as 96% of the aggregated TVL, as the information show.
Discussion participants within the length of CoinTelegraph event in Dubai. Source: cointelegraph
“It is an open race between several L1s to develop into the contact point for trade and the broader blockchain use,” said Svanevik.
“We see that smaller chains grow extremely quickly and a bunch of 5 or 6 chains appear as managers. It is an exciting time,” he said.
Cointelegraph's length is an event series that brings managers and innovators from the blockchain and web3 area for exclusive discussions.
Rising from Solana
Solana (Sol), another layer-1, which is understood for faster transactions and lower fees as Ethereum, is in pole position, in keeping with the CEO of Nansen, to develop into the subsequent leading chain of Web3.
“Solana has overtaken Ethereum about most Onchain metrics – energetic addresses, transaction volume and even gas fees,” said Svanevik. “Ethereum still results in TVL, and the exhibition of stablecoin remains to be strong, but Solana's growth is undeniable.”
In the meantime, dozens of smaller L1s are also fighting for market shares – and never all of them are gaining sustainable traction, said Vardan Khachachatryan, Chief Legal Officer of the Fastex trading platform, to CoinTelegraph throughout the committee.
“Unfortunately, we will actually see that chains have gotten popular in case you are the hype of this specific bull run, latest coins, air drops, etc. as a substitute of getting a seamless adoption,” said Khachryan.
