Despite a surge in Ethereum transactions nearing $5,000, the network is grappling with increasing competition, impacting revenue and user engagement. The rising transaction volume, exceeding 1.7 million daily on Tuesday, according to Nansen, reflects an exciting time for Ethereum. However, this growth is overshadowed by the emergence of Layer-2 networks like Arbitrum and Base, and competitor Aptos, all capturing a larger share of user attention and transactions. Data indicates that while Ethereum’s daily active addresses remain relatively consistent (400,000-600,000), its activity is being diverted to alternative blockchain platforms such as Arbitrum and Base, signaling a shift in market dominance.