Is Ethereum Still the King of DeFi? Comparing TVL in 2026
In the rapidly evolving world of decentralized finance (DeFi), Total Value Locked (TVL) is one of the most important metrics to gauge the strength and popularity of a blockchain network. As we enter 2026, the question on many investors' minds is: Is Ethereum still the king of DeFi? This article dives into the current TVL landscape, comparing Ethereum to other prominent blockchains in the DeFi space.
Ethereum’s Dominance: A Brief Overview
Ethereum has long been the foundation of DeFi, hosting the majority of DeFi protocols and applications since the sector’s inception. Its robust smart contract capabilities, large developer community, and first-mover advantage helped it secure a commanding lead in TVL for years. However, as of 2026, the competitive landscape has changed dramatically.
The Rise of Competitors: Solana, BNB Chain, and More
Other blockchains have made significant strides in capturing DeFi market share. Solana, with its high throughput and low transaction fees, has attracted numerous DeFi projects and users. Similarly, BNB Chain continues to offer a compelling value proposition with its low-cost environment and strong ecosystem support. In 2026, both Solana and BNB Chain have seen substantial increases in TVL, challenging Ethereum’s long-held dominance.
Moreover, newer layer-1 and layer-2 solutions, such as Avalanche, Arbitrum, and Optimism, have also contributed to the fragmentation of DeFi’s TVL. These networks offer Ethereum-compatible smart contracts with improved scalability, drawing developers and users away from the mainnet.
Comparing TVL: Ethereum vs. The Competition in 2026
According to the latest data in 2026, Ethereum still holds a significant portion of the total TVL in DeFi, but its market share has decreased compared to previous years. While Ethereum’s TVL remains at the top, it now represents around 45% of the total DeFi TVL, down from over 70% in earlier years.
Here’s a snapshot of the top networks by TVL in 2026:
- Ethereum: ~$150 billion
- Solana: ~$60 billion
- BNB Chain: ~$45 billion
- Avalanche: ~$25 billion
- Arbitrum & Optimism: ~$35 billion combined
These figures show that while Ethereum is still a major player, it is no longer the undisputed king in terms of relative dominance. The rise of layer-2 solutions built on Ethereum itself is also noteworthy, as they extend its reach without directly competing for the same user base.
What’s Driving the Shift?
Several factors are contributing to this shift:
- High gas fees: Despite improvements from upgrades like EIP-1559 and the Merge, Ethereum’s fees can still be prohibitive for small transactions.
- Scalability: Competing blockchains offer faster and cheaper transactions, which are crucial for DeFi’s mass adoption.
- Developer innovation: Many developers are choosing to build on newer chains that offer more flexibility and lower costs.
Conclusion: Ethereum’s Role in the Future of DeFi
While Ethereum is no longer the sole king of DeFi, it remains a critical and foundational part of the ecosystem. Its robust security, large developer base, and strong institutional support continue to make it a top choice for many DeFi applications. However, the diversification of the DeFi landscape means that users and investors should look beyond Ethereum to understand the full scope of opportunities and risks in the sector.
In 2026, the DeFi throne is shared, and the competition is healthy for innovation and adoption. Whether Ethereum will regain its former dominance or continue to share the spotlight remains to be seen, but for now, it is still a central player in the DeFi arena.