Ethereum L2s To Reach $1T in Market Cap, Says VanEck Analysts

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Ethereum L2s To Reach $1T in Market Cap, Says VanEck Analysts
  • VanEck analysts predict Ethereum layer 2 scaling networks’ potential to reach $1 trillion in market cap by 2030.
  • Analysts Patrick Bush and Matthew Sigel forecast that the Layer 2 networks’ TVL will surge substantially in the upcoming years.
  • The report anticipates that Ethereum will dominate over 60% of the market share across all public blockchains.

In an April 3 report, investment manager VanEck forecasted the potential of Ethereum’s layer 2 scaling networks to reach $1 trillion in market cap by 2030. Analysts Patrick Bush and Matthew Sigel shed light on the network’s ability to enhance blockchain scalability and efficiency.

In addition, the analysts estimated that Ethereum would dominate over 60% of the market share across all public blockchains. Commenting on the primary focus of the layer 2 blockchains, Bush and Sigel elaborated that they are set to confront Ethereum’s primary challenge of “limited capacity to process, store, and compute data.” They added,

“Ethereum’s dominance in smart contracts faces a critical hurdle: scalability. While the network offers unparalleled security and decentralization, transaction fees and processing times soar when usage intensifies.”

VanEck’s report spanned across various dimensions of the Layer 2 ecosystem, including developer experience, user experience, trust assumptions, transaction pricing, and ecosystem size. Reportedly, layer 2 technologies like Optimistic Roll-Ups and Zero-Knowledge Roll-Ups are dedicated to resolving Ethereum’s scalability concerns.

Moreover, the analysts anticipate an astounding surge in the Layer 2 blockchain’s Total Value Locked (TVL). According to the report, L2s within the Ethereum ecosystem are poised to dominate a significant portion of transaction value and TVL.  

The report also sheds light on the uncertain future of Layer 2 token valuation. Commenting on the long-term value of a majority of L2 tokens, the analysts posited that the top seven Ethereum-based L2 tokens boast a $40 billion fully diluted valuation. They added that in the upcoming months, the blockchain would launch more projects, which could push the valuation to $100 billion.

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