Chrome is using less than 500 MB of memory.Stop using Chrome, keep it only for final testing and use a more performance focused chromium variant like Opera GX or MS Edge for the heavy work, you'll save a lot of ram the can be better used. Im doing quite a lot more that you on my base m1 Air and it works fine.
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Google: Our Chrome browser is now faster than Safari on macOS
Google says Chrome is now 43% faster on Apple's M1 Macs than it was 17 months ago.
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