Summary
VanEck predicts Ethereum’s Layer-2 networks will reach a $1 trillion valuation by 2030, based on smart contract market share and revenue projections. L2 solutions like roll-ups improve scalability and efficiency by processing transactions off the mainnet. The analysis considers transaction pricing, revenue streams, and competitive challenges in the L2 sector.
Key Points
1. VanEck projects a $1 trillion valuation for Ethereum’s Layer-2 (L2) networks by 2030, emphasizing the crucial role L2 solutions play in scaling the Ethereum network to address scalability challenges.
2. The current market capitalization of L2 solutions is $28 billion according to CoinMarketCap data, and VanEck’s forecast implies a nearly four-fold increase in valuation over the next six years, assuming a 60% market share for Ethereum ecosystem smart contracts.
3. VanEck’s analysis evaluates L2 solutions across various dimensions, such as transaction pricing, developer and user experience, trust assumptions, and ecosystem size. L2 blockchains, utilizing strategies like roll-ups, offer a more efficient way to process transactions off the Ethereum mainnet, enhancing interaction with Ethereum.