In terms of a business competition, Binance Smart Chain is one a step ahead of the Ethereum platform. They dare to offer low fees to attract the attention of new projects to use the BSC platform. Seeing the breakthroughs made by the Binance Smart Chain, Ethereum a development team will definitely put up a fight to maintain its position as the 2nd best cryptocurrency after a bitcoin. Yeah, Ethereum 2.0 would be a very logical answer to regain dominance ETH.
It is tip of iceberg and Ethereum had same period in 2017 when it took the chance when bitcoin network was congested. Vitalik that time said Ethereum network won't be congested. Not too long later, a few months later, Cryptokitties and some bad ICOs make Ethereum network congested. If I recall correct, the congestion on Ethereum network needs more time to resolve than Bitcoin network.
Until the next bad thing happens to BSC,,, people will move to where it is fastest and cheapest but personally I think a lot of projects had the same choice in the past with NEO (china) and WAVES (Russia) but still they stuck on Ethereum.
Fee is the most attraction but chains will be full, congested and free at different times. Ethereum network won't be congested forever, high fee won't last forever. People will choose Ethereum again for their safety.
Once they realize later development is still on ETH 2.0, they will move back. Like you said, defi will die.
ETH 2.0 is promising to resolve the issue and DeFi death call is a good contributor.
I use to be a Ethereum supporter in the last few years but i am so disappointed on how this progress since last quarter of 2020.
though it made another ATH yet not enough for my expectation as comparable to Bitcoin increase? Ethereum is too far than what we can find while other altcoins is pumping high and high at Her back.
If you compare so, you need to compare many altcoins with bitcoin. Bitcoin is the leader of this market. There are not many altcoins have bigger increases than bitcoin if you're saying about old altcoins. New altcoins and new tokens are fully hyped.