One of Ethereum's advantaged properties is its network effect. As a first-mover in its industry segment it has maintained a strong market share of developers, businesses, and users. When additional consumers and entrepreneurs join the Ethereum network, its value as a platform also grows through the additional transaction possibilities these new users bring with them, creating a positive feedback loop.
Ethereum’s superior adoption has made it the leading platform for decentralised applications and digital assets. With thousands of developers building on Ethereum, new applications, tools, and proposals for change are constantly emerging. The network of developers creating applications attracts more users, while the growing user base encourages greater investment and more businesses to integrate Ethereum into their operations.
As Ethereum attracts new users, businesses, developers, and investors, its network effect becomes a competitive advantage, and should the user base become sticky enough to form a moat, it will be increasingly difficult for other projects to compete. The larger Ethereum’s network becomes and the longer it remains functional, the better its properties become, placing the network in a more competitive position among similar platforms.