Crypto News – Analysts from investment firm VanEck predict that in six years, Ethereum’s layer 2 scaling networks—which consist of thousands of use case-specific chains—will have a $1 trillion market valuation.
VanEck Analysts Bush and Sigel: Ethereum Layer 2 Market Cap Will Be $1 Trillion in 6 Years
Layer-2 blockchains are poised to benefit from Ethereum’s main drawback, which is its restricted ability to handle, store, and process data, according to a report released on April 3 by VanEck‘s senior digital assets investment analyst Patrick Bush and head of digital assets research Matthew Sigel.
By projecting that Ethereum would have 60% of the market share among all public blockchains and then measuring the volume of assets within the Ethereum ecosystem, Bush and Sigel were able to obtain their $1 trillion market cap projection.
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.
the analysts
They Believe L2 Revenues Will Surpass Ethereum Revenues
The recent Dencun update, which assisted in lowering L2 transaction fees through the specialized data-saving feature known as “Blobs,” indicated that Ethereum’s development is currently concentrated on improving its ability to process its layer-2 transaction data. Future income generation on L2s over the base Ethereum network could be “substantially more,” according to the analysts.
We expect L2 revenues to exceed Ethereum’s because Ethereum cannot match the transaction throughput or user experience of L2s.
the analysts
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