Ethereum Faces Challenges Amid Rising Competition

Ethereum is facing significant challenges as its dominance in decentralized finance wanes amid intensified competition from alternative blockchains like Solana, which offer lower transaction costs and faster speeds. Ethereum's network activity has hit new lows, with transaction fees dropping significantly and a sharp reduction in demand for its blockspace. The move of Ether to cold storage has led to the lowest supply on centralized exchanges since 2015, potentially setting the stage for a price surge due to reduced liquidity. Ethereum's transaction fee revenue has plummeted by about 95% from its 2021 peak due to decreased Layer 2 contributions and waning NFT market activity. Despite these challenges, Ethereum has shown some signs of recovery, forming a base above $1,820 and facing hurdles at the $2,020 resistance, suggesting potential future gains if it breaks through this barrier.