VanEck's August 2024 report outlines key factors contributing to Ethereum's price struggles, including a decline in network revenue, increased competition from faster blockchains like Solana, and the impact of Ethereum's own layer-2 solutions.

The report notes that users are gravitating towards higher-throughput layer-1 blockchains that offer faster and cheaper transaction processing, reducing demand for Ethereum's network. Ethereum's early success in the smart contract space gave it a first-mover advantage, but competition from newer blockchains like Solana, Sui, and Aptos is eroding its dominance.

VanEck's analysts also highlight the challenges Ethereum faces from both internal and external competition. The rise of Ethereum layer-2 networks, such as Optimism and Arbitrum, has led to what VanEck describes as "cannibalization" of Ethereum's layer-1 revenues, as these solutions draw users and developers away from the main network.

Source: https://coinpaper.com/5311/ethereum-faces-competition-and-revenue-issues-says-van-eck

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