VanEck’s Bold Forecast: Ethereum Layer-2 Market Value to Reach $1 Trillion by 2030

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A percussion blast of a forecast from banking titan VanEck has rocked the blockchain sphere, pitching the value of Ethereum Layer-2 solutions at an attention-grabbing $1 trillion. This eye-opening prediction accentuates the pivotal part scalability improvements and efficiency gains will play in the ongoing evolution of blockchain technology.

In a broad-ranging projection that drew its fuel from diligent research, Patrick Bush and Matthew Sigel, senior investment analyst and head of digital research at VanEck respectively, announced the expectation that Ethereum Layer 2 scaling networks will skyrocket to this unprecedented market valuation by the year 2030. Their in-depth analysis and audacious prediction revolved around a comprehensive evaluation of five significant areas impacting Ethereum Layer 2s, namely transaction pricing, developer experience, user experience, trust assumptions, and the size of the L2s ecosystem.

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The duo first assessed the range of assets within the Ethereum ecosystem before suggesting that Ethereum (ETH) would hold sway over an estimated 60% of the public blockchain market share. Of particular note is the fact that Layer 2s, driven by their ability to handle the majority of transactions off the main blockchain, effectively tackle concerns over scalability.

Two prominent types of Layer 2 networks, Zero-knowledge roll-ups (ZKUs) and optimistic roll-ups (ORUs), are seen as potential game-changers in this terrain by providing more efficient processing solutions. Due to constraints experienced by the main blockchain regarding transaction processing, the researchers suggest that these L2 technologies could potentially garner a more significant financial yield than Ethereum since they enhance scalability through off-network transaction handling.

In their blueprint of the future, Bush and Sigel caution not to overlook the rise of several use-case-specific roll-ups, despite the imminent dominance of a few general-purpose L2s. In a networked world of thousands of such unique roll-ups, they foresee the potential for hosting social media networks on various rollup platforms.

The $1 trillion valuation estimate is primarily based on the researchers’ belief that L2 solutions could potentially outperform Ethereum in terms of total worth within the next half-decade. They assert that Layer-2 blockchains can leverage Ethereum’s capped processing power alongside its data-storing and computation capabilities for their benefit.

Curiously, however, Ethereum is currently experiencing a bearish undertow in market positions as its price undergoes a downward correction despite repeated attempts to break the $4,000 ceiling. Even though an optimistic rebound is on the horizon, Ethereum has diffidently underperformed in comparison to other distinguished crypto coins like Bitcoin over the past month. As a result, buzz is gathering within the cryptocurrency community as they debate whether a further downturn is brewing.

Following a peak of $4,091 in anticipation of the Dencun upgrade, Ethereum has witnessed a decline of over 10% since March. Bitcoin was trading at $3,343 as of the last report, reflecting a modest daily increase of 1%. Despite the recent slump, Ethereum’s market cap stands at a considerable $401.42 billion, marking a 1% rise from the previous day. However, the daily trading volume has fallen by more than 30%, standing at $13.50 billion.