While there are analyses suggesting that Ethereum's presence is weakening, industry experts evaluate that Ethereum is evolving as the foundational infrastructure of the cryptocurrency industry.
Last week, Ethereum rose by about 40%, from $1,800 to $2,500. However, Ethereum's DeFi market has seen a total value locked (TVL) decrease of over 88% from its peak. Meanwhile, Solana is leading in active user numbers and transaction volume based on faster and cheaper fees.
Many users have left due to high gas fees, and the DeFi and Non-Fungible Token markets have moved to chains that are cheaper and faster. However, Ethereum remains the most secure and reliable blockchain. New features for developers, such as account abstraction and restaking, are being steadily added.
The current real-world asset tokenization market is valued at $56 billion, with more than half linked to Ethereum or Ethereum-based rollups. Large financial institutions like BlackRock and Franklin Templeton are also launching tokenization products based on Ethereum.
Moreover, Ethereum occupies over 50% of the stablecoin market, which amounts to $120 billion. These stablecoins are essential for on-chain transactions, loans, salary payments, remittances, and savings.
Ethereum is maintaining its market dominance with a current TVL of $60.95 billion and stablecoin supply of $124 billion. It also boasts the largest developer ecosystem. However, Solana is leading in daily active addresses and 24-hour DEX trading volume of $4.2 billion.
The Ethereum Foundation is taking measures to improve communication and culture with developers. However, to maintain competitiveness, it appears they must find a balance between scalability, decentralization, and value capture.
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