Ethereum remains a crucial component of the cryptocurrency ecosystem, enabling users to engage with a wide range of financial products via its blockchain. However, the platform is facing increased competition and challenges in maintaining its market position.

Currently, Ethereum is experiencing a significant decline in transaction volume, averaging only 1-2 million daily transactions. In contrast, Solana boasts an impressive 65 million transactions. Additionally, the price of Ethereum has struggled to recover its former highs, trading at $3,290, down from its all-time peak of $4,890 reached in November 2021.

Several factors contribute to this downturn:

• The emergence of layer-2 solutions offering lower transaction costs, with fees as low as $0.01 compared to Ethereum’s average gas fee of $1.50.
• A considerable decline in market activity, with trading volume decreasing by 39% in the last 24 hours.

As the decentralized finance sector continues to evolve, Ethereum is under increasing pressure to innovate and sustain its position in this rapidly changing market.

📎 Related coverage from: analyticsinsight.net