Ethereum's DeFi Dominance Faces Challenges from Rival Blockchains

Ethereum's dominance in the decentralized finance market is facing significant challenges as rival blockchains gain ground.

According to DefiLlama data, Ethereum's share of total value locked in DeFi dropped from 63.5% at the start of 2025 to around 54% by May 7, near a multi-year low.

The decline can be attributed to the increasing popularity of lower-cost networks such as Solana and BNB Chain, which are offering faster transaction speeds and cheaper execution.

Despite this decline, Ethereum still holds the largest position in the DeFi sector, with a total value locked (TVL) of $45.4 billion.