**Ethereum Faces Challenges Amidst Growing Competition**

VanEck's August 2024 Crypto Monthly Recap highlights several factors behind Ether’s (ETH) recent price struggles. The report identifies three main issues: a decline in network revenue, deliberate policy choices, and value extraction by layer-2 solutions and service providers.

Key Points:

- **Network Revenue Decline**: Ethereum's revenue is dropping as users shift to faster layer-1 blockchains like Solana (SOL).

- **Increased Competition**: Newer blockchains such as Solana, Sui (SUI), and Aptos (APT) are attracting developers and users due to their high transaction speeds.

- **Layer-2 Impact**: Ethereum's own layer-2 networks are "cannibalizing" its revenue, especially after the Dencun upgrade reduced fees by 99%.

VanEck analysts suggest that Ethereum's first-mover advantage in decentralized finance is being eroded by these newer, more efficient networks. Adrian Brink from Anoma also noted an oversupply of Ethereum scaling solutions, suggesting the market has more than needed to handle current traffic.

Ethereum's future remains uncertain as it navigates both internal and external pressures.