Ethereum, the second-largest cryptocurrency by market cap, has seen its dominance in the DeFi market fall to around 54%, down from 63.5% earlier this year, as competing blockchains continue capturing a larger share of the crypto ecosystem. 

Now the big question is Ethereum losing its grip on DeFi dominance? While ETH price has recovered to nearly $2,314.

According to DeFiLlama data, Ethereum’s share of total DeFi TVL dropped from 63.5% at the start of 2025 to roughly 54% this month, marking one of the network’s weakest dominance levels in years.

DeFiLlama currently values Ethereum’s total value locked at approximately $45.4 billion, far ahead of most competing blockchains.

However, other networks are rapidly absorbing market share by focusing on specialized use cases across the crypto ecosystem. Current DeFi TVL market share now stands at:

• Solana: 6.66%
• BNB: 6.60%
• Bitcoin ecosystem: 6.35%
• TRON: 6.17%
• Base: 5.44%
• Hyperliquid ecosystem: 1.81%

This shift suggests DeFi is evolving from a single Ethereum-centered ecosystem into a multi-chain market where each blockchain focuses on specific sectors like stablecoins, perpetual trading, Bitcoin collateral, or consumer applications.

Crypto analyst Ali Martinez also pointed to a major shift happening among Ethereum whales.

According to Martinez, wallets holding between 1,000 and 10,000 ETH have significantly reduced their holdings since October 2025.

This whale cohort previously accumulated aggressively during 2025, growing holdings from approximately 12.95 million ETH in April 2025 to 15.95 million ETH by October 2025

However, whale behavior later reversed sharply. Their combined holdings have now dropped to roughly 12.52 million ETH, representing a decline of approximately 21.5%.

This large supply reduction suggests Ethereum may need stronger institutional and retail demand to fully sustain another major rally toward the important $3,000 level.

Even as dominance falls, Ethereum price has started recovering again. Ethereum’s falling market dominance does not mean the network is getting weaker. 

Instead, the crypto market is becoming more competitive as newer blockchains attract users with faster transactions, lower fees, better DeFi apps, and strong reward programs.

As of now, ETH is trading around $2314, jumping 1.5% today. Ethereum has broken out of a descending triangle pattern on the daily chart, supported by rising trading volume and strong buying momentum. 

If the current momentum continues, Ethereum could push toward the $2,500 level in the near term, while a stronger bullish rally may drive the price closer to $3,000.