Established Ecosystem and Network Effects
Ethereum boasts a vast and well-established ecosystem of decentralized applications (dApps), DeFi protocols, and NFT marketplaces6. This extensive network provides Ethereum with a significant advantage in terms of adoption and utility. The platform's long-standing presence has fostered a large and active developer community, contributing to its continuous improvement and innovation4.Security and Decentralization
Ethereum prioritizes security and decentralization over raw transaction speed1. Its robust security model has been rigorously tested over time, making it a reliable option for developers and users alike4. The decentralized architecture of Ethereum provides inherent security by distributing data across numerous nodes, making it resistant to single-point failures or attacks4.Total Value Locked (TVL)
Ethereum's dominance is evident in its Total Value Locked (TVL) across various dApps. As of December 2024, Ethereum's TVL exceeds $71 billion, significantly outpacing Solana's $9 billion2. This substantial difference reflects the higher level of trust and investment in Ethereum's ecosystem.Smart Contract Capabilities
Ethereum's smart contract platform is more mature and widely adopted compared to its competitors. The Solidity programming language used for Ethereum smart contracts has a larger developer base and more extensive documentation, making it easier for developers to create and deploy complex applications6.Ongoing Improvements
Ethereum is actively addressing its scalability issues through ongoing upgrades and Layer 2 solutions5. The transition to Ethereum 2.0 and the implementation of sharding are expected to significantly improve its transaction throughput and reduce fees, potentially narrowing the performance gap with Solana and Sui1.Market Capitalization and Adoption
Ethereum's market capitalization of $360 billion dwarfs Solana's $60 billion, indicating higher overall adoption and investor confidence6. This larger market cap provides greater liquidity and stability for the Ethereum ecosystem.In conclusion, while Solana and Sui offer impressive transaction speeds, Ethereum's combination of security, decentralization, established ecosystem, and ongoing improvements continue to make it a preferred choice for many developers and users in the blockchain space146.Indeed, ETH has been pronounced "dead" 111 times throughout its history, often when it has lagged BTC the most thus 31 of those times are just in 2024 alone with numerous times in late 2017 and late 2020 just before it soared. Will this time prove different? Given history, it is unlikely and is a matter of patience before ETH once again resumes its outperformance due to the reasons given above. Of course, price/volume mean everything so if ETH fails to outperform BTC in this cycle, that is a sign that other layer 1s such as SOL or SUI are starting to steal market share from ETH.
