Solana Dominates Blockchain Activity While Ethereum Gains User Base

Layer-1 Blockchains Fueling Fierce Technological Competition and Innovation

A notable surge in Layer-1 blockchain activity is igniting intense competition, propelling industries toward more efficient blockchain solutions and enhanced decentralization.This dynamic habitat is a testament to the ongoing evolution of blockchain technology.

Did You Know? The concept of Layer-1 blockchains refers to the foundational network where transactions are natively processed and validated, as opposed to Layer-2 solutions which operate on top of a primary blockchain.

This heightened competition among foundational blockchain networks is a significant driver for innovation. Businesses and developers are actively seeking out the most robust, scalable, and secure platforms to build their decentralized applications (dApps) and services. The push for better performance and lower transaction costs among Layer-1 blockchains is a direct benefit to the broader blockchain ecosystem.

The foundational Layer-1 blockchains, such as Bitcoin and Ethereum, are continuously facing pressure to upgrade and adapt. New entrants and existing competitors are introducing novel approaches to consensus mechanisms, sharding, and interoperability. This competition is not just about speed or cost; it’s also about fostering greater utility and broader adoption of blockchain technology across various sectors.

Pro Tip: When evaluating Layer-1 blockchains, consider factors like transaction throughput (transactions per second), finality time, security audits, and the strength of their developer community.

The implications of this race are far-reaching.Industries are being pushed to re-evaluate their existing infrastructures and explore how blockchain can offer streamlined processes, enhanced openness, and improved security. Experts observe that this competitive landscape is accelerating the advancement of refined blockchain solutions that were once considered theoretical.

As an example, the ongoing development in Layer-1 scalability solutions aims to address the limitations of transactional capacity that have historically hindered widespread enterprise adoption. projects focused on achieving higher transaction throughput without compromising decentralization are at the forefront of this innovation push.Organizations looking to integrate blockchain are benefiting from this rapid advancement, gaining access to more powerful and cost-effective tools.

The drive for efficiency and enhanced capabilities on Layer-1 networks is critical for the future of decentralized finance (DeFi), non-fungible tokens (NFTs), and supply chain management. As thes foundational blockchains mature and compete,the overall utility and accessibility of blockchain technology expand,promising a more decentralized and efficient digital future.

We’re witnessing a period of unprecedented growth and development within the Layer-1 blockchain space. This intense competition is not only validating the potential of blockchain but also actively shaping its future trajectory.

How do you see the competition between Layer-1 blockchains impacting the adoption of decentralized technologies in your industry?

what specific features or advancements in Layer-1 blockchains are most significant to you as a user or developer?

Understanding Layer-1 Blockchains

Layer-1 blockchains are the base layer of a blockchain network, responsible for native transaction processing and validation. They form the fundamental infrastructure upon which all other services and applications are built. Examples include Bitcoin, Ethereum, Solana, and Cardano.The performance and capabilities of a Layer-1 blockchain are crucial for the success of the entire ecosystem it supports.

The evolution of Layer-1 blockchains has seen significant advancements in scalability, security, and sustainability. Early blockchains like Bitcoin prioritized security and decentralization, which sometimes came at the cost of transaction speed. Newer Layer-1 protocols are exploring innovative consensus mechanisms, such as Proof-of-Stake (PoS), and architectural designs like sharding, to improve transaction throughput and reduce energy consumption. These improvements are vital for enabling blockchain technology to support high-volume applications and mass adoption. For more on blockchain technology, consult resources like the IBM Blockchain page.

Frequently Asked Questions About Layer-1 Blockchains

What is the primary benefit of competition among Layer-1 blockchains?

The primary benefit is the acceleration of innovation, leading to more efficient, scalable, and secure blockchain solutions.

How does Layer-1 competition affect industries?

It pushes industries towards adopting more efficient blockchain solutions and enhances decentralization.

What are some key Layer-1 blockchains?

Some key layer-1 blockchains include Bitcoin, Ethereum, Solana, and Cardano.

What are newer Layer-1 blockchains focusing on?

How does Solana’s Proof-of-History (PoH) consensus mechanism contribute to its higher transaction throughput compared to Ethereum?

the Shifting Landscape of Blockchain Networks

The blockchain world is in constant flux. While Ethereum has long been considered the dominant force, recent data indicates a significant shift in network activity. As of late 2025, Solana is demonstrably leading in overall blockchain activity, measured by transactions per day and network congestion, while Ethereum continues to expand its user base. This isn’t necessarily a competition of “winner takes all,” but rather a reflection of evolving needs and technological advancements within the decentralized space. Understanding why this is happening is crucial for investors, developers, and anyone interested in the future of Web3.

Solana’s Surge in Activity: A deep Dive

Solana’s impressive performance isn’t accidental. Several key factors contribute to its current dominance in transaction volume:

Speed & Scalability: Solana’s Proof-of-History (PoH) consensus mechanism, combined wiht Proof-of-Stake (pos), allows for substantially faster transaction speeds and higher throughput compared to Ethereum’s earlier iterations. This makes it ideal for high-frequency trading, decentralized applications (dApps) requiring rapid confirmations, and microtransactions.

Lower Transaction Fees: A major pain point for Ethereum users has been “gas fees” – the cost of executing transactions. Solana consistently offers significantly lower transaction fees, frequently enough fractions of a penny, making it more accessible for a wider range of users and applications. This is a key driver for DeFi (Decentralized Finance) activity.

Growing DeFi Ecosystem: Solana’s DeFi ecosystem has experienced explosive growth. Platforms like Raydium, Serum, and Marinade Finance are attracting substantial liquidity and users, driving up network activity.

NFT Momentum: Non-Fungible Tokens (NFTs) have found a strong home on Solana, benefiting from its low fees and fast transaction speeds. Projects like Tensor and Magic Eden have become major players in the NFT space.

Anchor Framework Adoption: The ease of development using the Anchor framework (as highlighted in Solana’s official documentation https://solana.com/zh/docs) has encouraged developers to build and deploy applications on the Solana blockchain.

Ethereum’s Continued User Base Growth: A Different Story

Despite being surpassed in raw activity, Ethereum isn’t losing ground. In fact, it’s growing its user base. This is largely due to:

Network Effects & First-Mover Advantage: Ethereum was the first major smart contract platform, and benefits from strong network effects.A vast ecosystem of developers, tools, and applications has been built around it.

The Merge & Layer-2 Scaling Solutions: The prosperous transition to Proof-of-Stake (The Merge) and the development of Layer-2 scaling solutions (like Arbitrum, Optimism, and Polygon) are addressing Ethereum’s scalability issues. While not fully resolved, these improvements are making Ethereum more competitive.

Institutional Adoption: Ethereum continues to attract significant institutional investment and interest, particularly in areas like DeFi and staking.

Dominance in specific Sectors: Ethereum remains the dominant platform for certain types of dApps, particularly those requiring high security and decentralization, even if they sacrifice some speed or cost.

EVM Compatibility: The Ethereum Virtual Machine (EVM) compatibility of many Layer-2 solutions allows developers to easily port their existing Ethereum dApps to these more scalable networks.

Comparing Key Metrics: Solana vs. Ethereum (July 27, 2025)

| Metric | Solana | Ethereum |

| —————— | —————- | —————– |

| Transactions/Day | 85 Million+ | 35 Million+ |

| Average Txn Fee | $0.00025 | $5 – $20+ |

| Block Time | 400 milliseconds | ~12 seconds |

| Total value Locked (TVL) in DeFi | $65 Billion | $180 Billion |

| Active Wallets | 5 Million+ | 12 million+ |

Data is approximate and subject to change.

The Impact of Network Congestion

Network congestion is a critical factor. Ethereum, even with Layer-2 solutions, can experience periods of high congestion, leading to increased fees and slower transaction times. Solana, with its higher throughput, generally handles congestion more effectively. This impacts user experience and the viability of certain applications. During peak times in early july 2025, Ethereum experienced gas fees exceeding $50 for simple transactions, while Solana remained consistently under $0.01.

Real-World Examples & Case Studies

DeFi Trading: High-frequency traders overwhelmingly favor Solana-based decentralized exchanges (dexs) like Raydium due to the speed and low cost.

NFT Minting: The minting of popular NFT collections often occurs on Solana to