Ethereum's transaction count is on the rise as Ether approaches the $5,000 milestone, with daily transactions exceeding 1.7 million. However, this increase is tempered by tough competition from layer-1 blockchains and layer-2 networks such as Arbitrum, Base, and Aptos, which together recorded over 15 million transactions recently. Despite higher transaction volumes, the number of active Ethereum addresses has remained relatively static between 400,000 and 600,000 since 2018, indicating that users are shifting their activities to more cost-effective platforms. This shift has led to a decline in Ethereum's market share and revenue, with network fees dropping significantly since an upgrade in March 2024 incentivized users to adopt cheaper layer-2 solutions. Major players like Solana and Sui further exacerbate Ethereum's challenges by vying for user attention and market segment. Polygon Labs has warned that competing on transaction performance metrics might be detrimental to Ethereum's long-term health. Stakeholders are now tasked with reevaluating strategies to sustain Ethereum's relevance and viability in a rapidly evolving blockchain landscape.

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