If I recall correctly it sorta changes over the course of the games. I think DS1 was primarily focused on character level, or souls spent on levels, while DS2 had a separate tracking system based on how many souls you have collected in total. Can't speak too much on DS3 though.
For DS1 and DS2 at least, you definitely can climb those ranks to the point it's difficult to find someone else that's online and in your bracket, yeah.
I know I'm literally saying this to the Satisfactory community, but I'm curious if anyone else feels the same - this is a game I've come back to time and time again for a couple of years now. I don't know what's wrong with me, but I always start a new save every time, and get though most of the tech teirs before slowly playing it less and less (around aluminum production seems to be where it happens).
So, in other words, I guess I'm reinstalling this again. I'm sure my next factory will be perfect on the first try this time. Updates to splitter and merger snaps for belts and elevators might be the next linear conveyor-level QoL I needed.