Ethereum Price Climbs Towards $5,000 as Transaction Volumes Soar, But Market Share Faces Pressure

Ethereum’s price surged to $4,724 on Wednesday, nearing the critical $5,000 mark. This surge is driven by a significant increase in transaction activity on the network. Daily average transactions surpassed 1.7 million, approaching record levels according to Nansen data. However, Ethereum’s dominance is being challenged by the emergence of competing layer-2 solutions and next-generation layer-1 blockchains like Aptos and Solana. These innovations are attracting users seeking faster transaction speeds and lower fees, eroding Ethereum’s protocol revenues and user base.