Ethereum's position as the leading DeFi network is showing signs of erosion, with its share of total value locked (TVL) across all protocols slipping below 54% for the first time since May 2025, according to data from Unfolded. While Ethereum remains the largest chain by absolute TVL—holding roughly $48 billion—the decline in its relative weight reflects a growing fragmentation of liquidity across the crypto landscape.
Competitors such as Solana, Arbitrum, Base, and Hyperliquid have been steadily gaining traction. Solana and Hyperliquid alone now capture up to 42% of the DApp revenue market share, while DEX volume on Ethereum has dropped 53% over the past six months. DApp revenue on the network has fallen nearly 49%, highlighting a shift in user activity toward faster and cheaper alternatives.
ETH price mirrors this pressure: it has traded below the $2,400 resistance level for three consecutive months, down 21% year-to-date compared to an 11% decline in the broader crypto market. Spot demand remains weak, with ETF flows turning negative and whale selling increasing. Analysts emphasize that a sustainable recovery hinges on a convincing break above $2,400 backed by genuine spot buying.
Despite these challenges, Ethereum's DeFi infrastructure remains unmatched in absolute terms—its TVL is still six times larger than its nearest rival—and the successful rollout of scaling upgrades like EIP-4844 could restore competitiveness. However, the current trend underscores that the DeFi ecosystem is now genuinely multi-chain, and capital is no longer concentrated exclusively on Ethereum.
