Ethereum’s DeFi Dominance Erodes as Solana and Tron Gain Traction

Published: 2025-11-12 23:23:23 |

Ethereum’s DeFi dominance stands at 67.65% of total value locked in 2025, yet rival chains are chipping away at its lead. Solana, with 8.9% market share, now surpasses Ethereum in daily active addresses and transaction volumes thanks to lower fees and faster processing. Tron has captured 25.78% of stablecoin issuance, compared with Ethereum’s 55.55%, while BNB Chain and Bitcoin hold 6.67% and 6.75% respectively. Developer activity metrics from Santiment show Solana outpacing Ethereum (21.5 vs. 14.3), and reports from CoinGecko highlight that high gas fees remain a barrier for ETH. Despite a recent 2.5% daily dip, ETH gained 5.6% on the week, but sustained pressure from Solana and Tron may weigh on its price. Traders should watch on-chain metrics, layer-2 adoption and cross-chain flows as the DeFi ecosystem evolves.

Neutral

The report highlights gradual shifts in DeFi market share rather than a sudden crisis. Ethereum remains the dominant platform, but Solana and Tron’s growth introduces selective capital rotation. Historically, similar trends—such as BNB Chain’s rise—caused short-term pressure on ETH gas fees and protocol yields, yet the overall sector continued to expand. In the short term, traders may rotate into SOL and TRX for higher yield and lower fees. Over the long term, Ethereum’s upgrade roadmap and layer-2 adoption could restore competitive balance, keeping the market outlook neutral.