- Ethereum TVL share decreased to a 3-month low of 54% in January 2025.
- Ether is trading at $3,368 currently, with a daily increase of 4%, after a month-long downward trend.
Ethereum dominance is gradually decreasing among blockchains that enable dApp development and DeFi. With the emergence of blockchain networks such as Solana, Tron, Sui, Base, Hyperliquid, Ethereum is losing its share of TVL in the blockchain ecosystem. Even the short bull run we witnessed in December 2024 couldn’t favor the second largest cryptocurrency by market cap.
As per DeFiLlama statistics, Ethereum TVL share recorded a 3-month low in January 2025. Ethereum used to capture around 60% of the total DeFi TVL in mid 2024. However, by the end of the year, it dropped to 56% and further plunged to 54% this month. On the other hand, Tron blockchain recorded its highest TVL share of 17% in Sept 2024, which also dropped this month to 5.82%.
Will Ethereum Reclaim its Dominance in 2025?
Ethereum witnessed a significant decrease in its dominance over other layer1 blockchains with dApp support. As per Matrixport report, Ethereum dominance decreased from 18% to 12% by the end of 2024. The attention shifted from Ethereum to other blockchain networks such as Solana, Tron, and Sui, particularly in 2024.
Matrixport further stated that Ethereum could regain its dominance in 2025. While Bitcoin acts as the initiator of the bull run, Ethereum has been prepping for a bigger price rally in 2024. However, Ethereum has to come up with more adoption and large institutional investor accumulations to regain its dominance.
While most of the altcoins recorded ATH values in December 2024 bull run, Ether struggled hard to stay above the $4,000 price level for the entire 2024. After a month-long downward trend, Ether price rose by 5% today and is currently trading at $3,380.
With the anticipation of a larger crypto bull run in 2025, upcoming Trump’s inauguration, combined with institutional inflows into Ether ETFs, Ethereum could regain its dominance among altcoins and layer1 blockchains in 2025.
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