Crypto analyst Ignas has recently claimed that Ethereum (ETH) is losing its competitiveness against other layer-one networks, which is the primary cause of its price struggles. Although Ethereum’s dominance in the layer-one industry grew rapidly after introducing layer twos such as Arbitrum and Optimism, other networks improved their speed, costs, and scalability, causing Ethereum to lag.
Ignas specifically mentioned Solana (SOL) as a strong competitor, stating that it “shattered the illusion that the Ethereum roll-up approach is the only viable scaling solution.” Ethereum co-founder Vitalik Buterin has proposed improvements for the blockchain network to surpass 100,000 transactions per second (TPS) and tackle fragmentation issues.
Ethereum’s recent performance has raised concerns over its competitiveness and the role of layer twos in shifting activity and revenues away from the network.
