Ethereum's Path to Long-Term Dominance in the Post-Merge Era

Ethereum’s journey in the post-Merge era has been nothing short of transformative. Since transitioning to a proof-of-stake (PoS) consensus mechanism in 2022, the network has redefined its utility and market position through a combination of technological innovation, ecosystem resilience, and strategic scaling solutions. As the crypto landscape evolves, Ethereum’s ability to maintain a defensible market share—despite fierce competition from high-speed alternatives like Solana and Base—underscores its enduring relevance.

Network Utility: Scalability and Cost Efficiency

The Merge marked a pivotal shift in Ethereum’s architecture, but the true test of its long-term viability lies in its ability to scale. According to a report by The Standard [3], Layer-2 solutions such as Arbitrum and Optimism have become the backbone of Ethereum’s scalability, processing over 60% of transactions in Q3 2025. This shift has been amplified by infrastructure upgrades like the Pectra Upgrade in May 2025, which introduced 11 Ethereum Improvement Proposals (EIPs) to reduce congestion and lower gas fees. Data from CoinLaw [2] reveals that average gas fees have plummeted to $0.08 per transaction in Q3 2025, an 81.77% decline from the same period in 2024.

The implementation of EIP-4844 (proto-danksharding) has further cemented Ethereum’s cost efficiency. By optimizing data availability for rollups, this upgrade has slashed gas fees for Layer-2 transactions by over 50% [2]. As a result, Ethereum’s network now supports a hybrid model where the mainnet prioritizes security and finality, while Layer-2 solutions handle throughput. This bifurcation has not only reduced fees but also attracted a new wave of users, with active Ethereum addresses surging to 19.45 million in August 2025—the highest level since May 2021 [2].

Defensible Market Share: DeFi and TVL Leadership

Ethereum’s dominance in decentralized finance (DeFi) remains a cornerstone of its market position. As of Q3 2025, Ethereum holds 63% of all DeFi protocols and over $78.1 billion in total value locked (TVL), accounting for more than half of the global DeFi ecosystem [2]. Competitors like Solana and Base have made inroads, with Solana capturing 8.4% of DeFi liquidity and Base reaching $2.2 billion in TVL [2]. However, Ethereum’s entrenched position in stablecoins and lending protocols—where it holds $150 billion in stablecoins and $90 billion in TVL—highlights its first-mover advantage [3].

This leadership is not accidental. Ethereum’s smart contract functionality, institutional adoption, and robust security model have created a flywheel effect. As The Fool [3] notes, even as faster blockchains like Solana and Tron emerge, Ethereum’s ecosystem continues to attract developers and capital due to its proven track record. For instance, Base, Coinbase’s Ethereum Layer-2 solution, has leveraged its parent company’s 100 million+ user base to achieve 21.5 million active addresses in a single month [5]. This integration of retail and institutional demand is a unique asset for Ethereum.

Developer Activity and Ecosystem Growth

While Solana has outpaced Ethereum in terms of new user address growth—adding 100–150 million monthly compared to Ethereum’s 3–5 million—the latter’s developer ecosystem remains a critical differentiator. Supra [4] reports that Ethereum maintains a mature developer base of 1.3 million, with Layer-2 solutions like Arbitrum and Base driving innovation. The Pectra Upgrade, which includes 11 protocol enhancements, is expected to further bolster scalability and developer tools [3].

Base, in particular, has emerged as a bridge between Ethereum’s security and Solana’s speed. By August 2025, Base’s TVL had surpassed Arbitrum’s, reaching $4.32 billion [3]. This growth is fueled by ultra-low fees ($0.08 average) and seamless onboarding via Coinbase. Meanwhile, Solana’s Alpenglow upgrade—reducing block finality to 150 milliseconds—has made it a preferred platform for real-time applications [3]. Yet, Ethereum’s focus on institutional-grade security and its role as the “settlement layer” for Layer-2 solutions ensure it remains the bedrock of the crypto economy.

Conclusion: A Network Built to Last

Ethereum’s path to long-term dominance is not without challenges. The rise of high-throughput competitors and the ongoing evolution of user preferences will test its adaptability. However, the data paints a clear picture: Ethereum has transformed itself from a proof-of-work experiment into a scalable, secure, and defensible platform. Its ability to reduce fees, attract capital, and retain developer mindshare—while integrating with emerging Layer-2 solutions—positions it as the linchpin of the post-Merge era.

As the crypto market matures, investors should recognize that Ethereum’s value proposition is no longer just about being the first smart contract platform. It is about being the most resilient one.

**Source:[1] The Ultimate 2025 Guide: How to Mine Ethereum (ETH) Like a Pro [https://www.btcc.com/en-US/square/R0thIRANexus/689687][2] Ethereum Statistics 2025: Insights into the Crypto Giant [https://coinlaw.io/ethereum-statistics/][3] Ethereum vs Solana in 2025: What Founders and Builders Need [https://www.linkedin.com/pulse/ethereum-vs-solana-2025-what-founders-builders-need-9ox7c][4] [Ethereum vs. Solana: The Complete Guide (2025) - Supra] [https://supra.com/academy/ethereum-vs-solana/][5] Top 10 Fastest-Growing Blockchains in 2025 by Active Users [https://cointelegraph.com/news/top-10-fastest-growing-blockchains-of-the-year-ranked-by-active-users]