## **3. Ethereum and Layer 2 Competition**
Ethereum continues to dominate in **DeFi (Decentralized Finance)** and **NFTs**, but faces competition from faster and cheaper chains:
- **Solana and Avalanche** are gaining ground with faster transactions and low fees.
- **New Layer 2 solutions** (like Arbitrum and Optimism) are scaling Ethereum to reduce costs.
- **Ethereum 2.0** continues to progress, but the full migration to **Proof-of-Stake** still faces technical challenges.
🔹 **Trend:** The battle between **Ethereum vs. Alternatives** will define the future of blockchain applications.
