Banking giant VanEck has valued ethereum Layer-2 (L2) solutions at a staggering $1 trillion in a bold move. ethereum-layer-2s-valuation-prediction-by-2030/” target=”_blank” rel=”nofollow”>predictionemphasizing the critical role that efficiency gains and scalability improvements will play in the development of blockchain technology.
ethereum Layer 2 Poised for Significant Rise in Valuation
According to VanEck researchers, ethereum Layer 2 Scaling networks are expected to skyrocket to the aforementioned market valuation by 2030. Leading the comprehensive prediction were Patrick Bush, senior investment analyst at VanEck, and Matthew Sigel, head of digital research.
Specifically, the bold forecast was made while evaluating ethereum Layers 2 in five different major areas. These include the price of Layer 2 transactions, developer experience, user experience, trust assumptions, and the size of the Layer 2 ecosystem. Furthermore, it was done by first evaluating the number of assets in the ethereum ecosystem and then projecting that eth would represent around 60% of the market share among public blockchains.
Notably, Layer 2, by handling most transactions outside the main blockchain, addresses scalability issues. In this case, zero-knowledge rollups (ZKU) and optimistic rollups (ORU) are the two main forms of Layer 2 networks.
Given the transaction processing limitations of the main blockchain, these L2 technologies can generate more funds than ethereum as they handle scalability by processing transactions outside the main network.
As the researchers stated, in the future, a few general-purpose L2s will be in control, but a large number of rollups tailored to certain use cases will also emerge, allowing social media networks to be hosted in different rollups.
The report said:
Beyond the dominance of a few rollups among general-purpose L2s, we predict a future of thousands of use-case-specific rollups. These L2s will be segmented by sector, application or function. Other types of chains may be specifically geared toward hosting an entire industry, such as a roll-up that hosts a social media network, as well as applications that want to create products and services for that social media network.
This forecast for VanEck It mainly points to the possibility that L2 solutions could perform better in terms of value than ethereum in the next six years. The report also states that Layer 2 blockchains will benefit from ethereum's restricted processing power, as well as its computing and data storage capabilities.
eth price experiences bearish activity
Now, The price of ethereum is declining after failing to surpass the $4,000 mark once again. Although the market is correcting lower, a positive rebound is expected soon.
Compared to other notable coins in the cryptocurrency market like bitcoin, eth has underperformed over the past month. Consequently, there has been speculation within the cryptocurrency community as to whether a further decline is imminent.
eth has seen a decline of over 10% since March, following a surge to $4,091 before the Dencun upgrade. At press time, ethereum was trading at $3,343, showing a 1% increase over the past day.
Its market capitalization is now valued at $401.42 billion, up 1% in the last 24 hours. However, its daily trading volume has plummeted more than 30%, standing at $13.5 billion.
Featured image from iStock, chart from Tradingview.com
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