Ethereum’s dominance in Decentralized Finance (DeFi) is largely attributed to its first-mover advantage and the strong network effects it has cultivated. While emerging blockchains like Solana, Avalanche, and Cardano present threats with their superior speed and lower fees, Ethereum’s established ecosystem is difficult to surpass. Developers, users, and capital have already flocked to Ethereum, creating a self-reinforcing cycle. These network effects mean that even if newer chains offer technical improvements, Ethereum’s head start makes it a formidable incumbent. However, Ethereum must address its scalability issues through upgrades like Ethereum 2.0 to maintain its lead. If it fails to do so, the superior performance of these emerging chains could gradually attract developers and users, chipping away at Ethereum’s market share. For now, Ethereum’s network effects provide a significant moat, but the threat from emerging chains is real and growing.