Ethereum dominates DeFi with 60% market share, challenged by Polygon and Solana in NFTs

Ethereum's dominance in decentralized finance remains unshaken in 2025, commanding nearly 60% of the total value locked across all DeFi protocols. The total DeFi market reached $153 billion in TVL, with Ethereum processing approximately 1.65 million transactions daily, averaging $11.7 billion in daily transaction value. Active DeFi users on Ethereum surpassed 7.8 million, representing a 19% year-over-year increase.

However, Ethereum faces intensifying competition in the NFT sector from alternative blockchains. The following table illustrates the competitive landscape in October 2025:

Polygon attracts developers through EVM compatibility and exceptional cost efficiency at $0.0046 per transaction, while maintaining Ethereum's security infrastructure. Solana captured the highest DEX trading share in early 2025, appealing to users seeking speed and accessibility. The average NFT price decline from $321 in January to $54 in October has democratized collection access across chains. Layer 2 solutions now process over 58.5% of total Ethereum transactions, enhancing scalability while Ethereum maintains its commanding position through robust security and established liquidity, though emerging chains continue fragmenting market share across specialized use cases and user preferences.

ETH staking grows to 27.9% on centralized exchanges, with Lido leading at 29.32% market share

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The Ethereum staking landscape is experiencing significant consolidation, with centralized exchange platforms capturing an increasingly substantial portion of network validation activity. Current data reveals that centralized exchanges now account for 27.9% of all ETH staking, representing a major shift in how institutional and retail participants secure their holdings while earning rewards.

Lido maintains its position as the dominant force with 29.32% market share and approximately 9.41 million ETH under stake, demonstrating the platform's superior liquidity and institutional appeal. However, the rising prominence of centralized exchange staking reflects evolving market dynamics. These platforms offer simplified onboarding, immediate liquidity, and reduced technical friction compared to solo staking or decentralized protocols, attracting capital from participants prioritizing accessibility over decentralization.

The competitive pressure between centralized exchanges and liquid staking providers is reshaping Ethereum's validator distribution. As institutional participation grows through both channels, the concentration of staking power raises important considerations regarding network resilience and governance. The approximately 33.8 million ETH currently staked across all methods underscores how staking has become integral to Ethereum's infrastructure security and participants' revenue strategies.

Ethereum's deflationary mechanism burns 23,700 ETH, reducing annual inflation to -0.053%

Ethereum's burning mechanism through EIP-1559 continues to reshape the network's monetary policy. In 2025, the protocol has burned 23,700 ETH, contributing to a shift in the network's inflationary trajectory. This deflationary burn mechanism represents a fundamental change in how Ethereum manages its supply dynamics compared to traditional inflation models.

The annual inflation rate has declined to -0.053%, marking a significant milestone for the protocol. However, the actual supply dynamics reveal a more nuanced picture. As of November 2025, Ethereum's net annual supply growth stands at approximately 0.786%, indicating that despite substantial burns, validator rewards continue to introduce new ETH into circulation.

This apparent contradiction stems from Ethereum's structural design, where staking rewards—necessary for network security—perpetually issue new tokens. The deflationary narrative depends entirely on maintaining sufficiently high network activity to generate fees that exceed validator issuance. Currently, fee generation falls short of this threshold, resulting in net inflation despite the burn mechanism's effectiveness at reducing supply during high-demand periods.

FAQ

Is ETH coin a good investment?

ETH is a top cryptocurrency with strong potential. Its role in DeFi and network upgrades make it a solid long-term investment choice.

How much will 1 Ethereum be worth in 2030?

Based on VanEck's research, 1 Ethereum could be worth approximately $11,849 by 2030. This projection considers various market factors and growth assumptions.

How much is $500 ETH worth in dollars?

As of 2025-12-08, $500 ETH is worth approximately $1,527,330 in dollars, based on the current market price of Ethereum.

What is an ETH coin worth?

As of 2025-12-08, an ETH coin is worth $3,037.07. This price reflects the current market value but can fluctuate based on various factors.