The cryptocurrency landscape is experiencing an unprecedented level of competition among Layer-1 (L1) blockchains, a battle increasingly defined by the ability to attract and retain real capital rather than speculative hype. At the heart of this intense rivalry lies Ethereum, demonstrating robust on-chain fundamentals that signal growing long-term confidence in the network, even as formidable rivals challenge its historical dominance.
Ethereum's Strengthening On-Chain Position
Ethereum's core network metrics paint a picture of burgeoning strength. Staking has reached an all-time high, with approximately 36 million ETH — roughly 30% of the total supply — now locked within the network. This significant commitment is further underscored by a substantial validator queue holding 2.4 million ETH, indicating sustained interest and trust in the platform's future. Concurrently, a noticeable movement of 140,000 ETH off exchanges has reduced Ethereum's exchange reserves to 16.44 million. This reduction, coupled with record staking, strongly suggests a potential supply shock brewing quietly, which is already reflected in a 7% price increase for ETH.
The Intensifying L1 Competition and Dominance Test
Despite Ethereum's impressive internal growth, its position at the apex of the L1 ecosystem is being rigorously tested by rapidly ascending competitors. Other L1s are also achieving significant milestones, shifting capital flows and introducing new dynamics. Solana, for instance, has seen the value of tokenized Real-World Assets (RWA) on its chain exceed $1 billion for the first time, marking an all-time high. Similarly, Monero (XMR) posted a remarkable 28% weekly rally, pushing its market cap to $15 billion. This vibrant competitive environment puts Ethereum Dominance (ETH.D) under scrutiny. The metric has been range-bound between 12% and 13% for over eight weeks, nearing a critical resistance level. While a breakout above 13% would be significant, the surging performance of rivals like Solana, which leads 2026 with a 16% gain, suggests that Ethereum's staking record alone may not guarantee a definitive breakout in its market share. The battle for L1 supremacy continues, making ETH.D the pivotal metric to watch.
