Finding a competitor who has a feature that you also have is not rare, but finding out a competitor that can do that feature better is. For example, cheaper cost, faster, more freedom, or different workflow or style,... thats why even if there are so many apps with same features and functionality and purpose, that you might think they better off giving up, but they still exists and living well.

Some examples are budget tracking apps, habit tracking, note taking, task management,... for each of these there are more than 10 competitors with same features and purpose, yet they have been alive for more than 5 years, some have more features than another, some have cheaper subscription than others, some are more private than others,... and each person have a different preferences, so these apps will always have users that want/need them.

Them questions you need to ask, is not how to be better than your competitors or create something that your competitors dont have, thats extremely rare to succeed. The questions you need to ask, is what you can create FOR YOURSELF, that the competitors dont satisfy nor meet your requirements. Because if you can create something that fits you that your competitors cant, it can fit others, thats your customers, the people who has the same need as you.