Blockchain technology took a big step forward with Ethereum.
Ethereum (ETH -2.28%) recently turned 10, as it launched on July 30, 2015. In crypto years, that’s a fairly long time. Blockchain technology is continuously improving, and most cryptocurrencies either fizzle out quickly or never catch on in the first place.
Considering the massive number of cryptocurrencies that are out there, no one can learn about them all, but Ethereum is one that’s worth your time. Here’s why.
Ethereum was the first blockchain that could run smart contracts — self-executing programs built on a blockchain. The introduction of smart contracts was a major development that expanded on what blockchains could do. It led to the creation of decentralized finance (DeFi) services, stablecoins, and tokenized real-world assets (RWAs), to give a few examples.
Many blockchains with smart contract functionality are competing with Ethereum now. But because Ethereum was the first mover, it has been able to capture a dominant market share.
The current total value locked (TVL) into DeFi applications across all blockchains is $156 billion, according to DefiLlama. Ethereum accounts for a whopping 61% of that with $95 billion in TVL. Solana ranks a distant second with $11 billion. It’s the same story with stablecoins, where Ethereum tokens account for 52% of the entire market.
Most of the money and activity is on Ethereum, which has kept it firmly entrenched as the second-largest cryptocurrency after Bitcoin. All the activity on the Ethereum blockchain drives adoption of its native cryptocurrency, because gas fees are paid in ETH tokens.
Ethereum is in a competitive space, and many blockchains have been called potential “Ethereum killers,” including Solana, Cardano, and Avalanche. But even after being around for years, they’re well behind Ethereum in terms of value and usage, so none of them have lived up to that title so far.
Ethereum may not completely maintain its current market share. It’s still well-positioned to remain a top blockchain since it is far ahead in terms of usage.
