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Ethereum’s Reign Might Be Over A New Chapter Begins for Layer 1 Blockchains

  • Writer: Sammy Salmela
    Sammy Salmela
  • May 5
  • 2 min read

Blockchain race heats up as Ethereum loses dominance to Solana


Date: May 2, 2025

Source: Cointelegraph


Introduction

For years, Ethereum stood tall as the undisputed leader of Web3 and decentralised applications. But things have changed. Fast. According to voices from the Cointelegraph LONGITUDE event, Ethereum’s dominance is no longer guaranteed. In fact, it’s now anyone’s race.


A New Era in Blockchain: From One King to Many

Ethereum once held a staggering 96% of all blockchain based value. Today, that number has dropped to just over 50%. While still in the lead, it’s no longer a one horse race. According to Nansen CEO Alex Svanevik, “It’s an open race between multiple L1s for becoming the go to platform for trading and broader blockchain use.”

The reasons? Other Layer-1 (L1) blockchains have rapidly improved. Faster speeds. Lower costs. Better experiences. All things that Ethereum once promised, but rivals are now delivering quicker.


Solana Surges Ahead

If there’s one blockchain making the most noise right now, it’s Solana.With lightning-fast transactions and significantly lower fees, Solana has surpassed Ethereum in active users, transaction volume, and even gas efficiency. While Ethereum still leads in total value locked (TVL), Solana is growing at a pace that's impossible to ignore.

As Svanevik pointed out, “Solana’s growth is undeniable.”

Still, not all new L1s are finding long-term success. Vardan Khachatryan of Fastex warned that many projects thrive only during bull market hype, without building a foundation for real-world use.


AI-Powered Sentiment Analysis

Our AI analysis of this article revealed:

• sentiment score: 0.25

• financial sentiment: 0.65

• polarity score: 0.135

• subjectivity score: 0.502


These scores suggest a moderately positive financial tone, indicating cautious optimism. The article maintains a balance between excitement and realism, offering a grounded perspective on the evolving L1 blockchain landscape. Readers are likely to feel intrigued by emerging opportunities, while also being reminded of the fast moving and unpredictable nature of crypto.


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Disclaimer

This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.

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