ETH's tactical problem is the L2 free market. It is a great approach from the perspective of finding the right technical solution and remaining decentralized, but the externalities eat away at the user experience, which is  equally if not more important. 

There is simply no way for a normal user to understand what they are getting into with layers, chains, 7702 wallets, evm compatibility and bridges. 

There is a light at the end of the tunnel if we make blobs bigger, introduce account + chain abstraction, native rollups etc, but this is a massively complex roadmap and will take years to realize. 

In that time, Solana just works (tm) and is eating ETHs lunch.

Technowatermelon. Elder Millenial. Building Farcaster. 

nf.td/varun

ETH's L2 free market poses user experience challenges and risks losing ground to simpler solutions like Solana