Looking at recent on-chain data, there's a detail that really explains the situation.

Over the past year, Ethereum has absorbed nearly $50 billion in net inflows of stablecoins, with the overall supply increasing by 43.4%. How does this compare to other public chains? Tron grew by 31.9%, while Solana only by 12.6%. The gap is quite significant.

Why focus on stablecoins? Because they are the lifeblood of DeFi. The chain with the largest and fastest-growing net inflows usually indicates what? The most abundant real liquidity, the highest TVL, and the most active applications. In other words, it's where the money is flowing.

Although Ethereum's gas fees are indeed high and its transaction speed isn't as fast as new public chains, the depth and composability of core DeFi sectors like lending, DEX, and derivatives are currently unmatched. This is not just a technical issue but also an ecosystem accumulation problem—more protocols mean more stacking, more gameplay options.

Another key factor is that after the US launches a spot ETH ETF in 2025, institutional allocation channels for Ethereum will become more standardized and convenient. Large stablecoin inflows are often related to this path—fiat currency exchanges for stablecoins, then into ETH for DeFi. This isn't retail FOMO; it's capital making calm allocation decisions.

Solana's high trading volume and meme popularity are facts. But a mere 12.6% increase in stablecoins really highlights the issue—real monetary attraction still falls short. Tron mainly benefits from cross-border remittances and low-cost transfers; high-end DeFi scenarios are inherently weak.

From a cycle perspective, a large influx of stablecoins is usually an important signal of the early bull market. Funds accumulate on-chain, ready to quickly convert into ETH or other tokens when risk assets start to rise. Currently, with signs of a rebound in early 2026, this inflow could continue to expand Ethereum's upside potential.

In short, Ethereum hasn't fallen behind; instead, it continues to widen the gap in the most core capital indicators. When assessing competition among L1s, you can't just look at TPS, fees, or hot topics—you need to see where the actual funds are flowing. Right now, money is still flowing into Ethereum, and that is the most solid data.