Ethereum's DeFi Market Share Drops to 54% as Rival Chains Gain Ground

Ethereum's share of total value locked in DeFi declined to approximately 54% as of May 2026, down from 63.5% at the start of 2025, marking the lowest level since May 2025. Competing Layer 1 and Layer 2 networks are capturing market share from Ethereum, the second-largest cryptocurrency by market cap, as the DeFi ecosystem diversifies across multiple blockchain platforms.

Ethereum DeFi market share decline

• ▪Competing blockchains are capturing a larger share of the crypto ecosystem as of May 9, 2026.
• ▪Ethereum is the second-largest cryptocurrency by market cap as of May 9, 2026.
• ▪Ethereum's dominance in the DeFi market fell to around 54% as of May 9, 2026.
• ▪Ethereum's DeFi market dominance was 63.5% earlier in 2026.

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