VanEck is targeting a market capitalization of $1 trillion with ETH stagnating.
Banking giant VanEck has put the value of its Ethereum layer-2 (L2) solution at a bold valuation of $1 trillion. predictionWe emphasize that improved efficiency and scalability play an important role in the development of blockchain technology.
Ethereum Layer 2 is expected to see a significant increase in valuation.
According to VanEck researchers, Ethereum Layer 2 Expanding networks are expected to soar to the aforementioned market value by 2030. Patrick Bush, VanEck’s senior investment analyst, and Matthew Sigel, head of digital research, led the comprehensive forecast.
Specifically, bold predictions were made as we evaluated Ethereum Layer 2 in five important areas: This includes layer 2 transaction pricing, developer experience, user experience, trust assumptions, and L2 ecosystem size. It was also created by first evaluating the asset size of the Ethereum ecosystem and then predicting it. ETH It will account for approximately 60% of the public blockchain market share.
It is worth noting that Layer 2 solves the scalability problem by managing most transactions on the main blockchain. In this case, zero-knowledge rollup (ZKU) and optimistic rollup (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 address scalability by processing transactions outside of the main network.
As the researchers say, in the future there will be several general-purpose L2 controls, but there will also be numerous rollups tailored to specific use cases, making it possible to host social media networks on a variety of rollups.
The contents of the report are as follows:
Beyond the dominance of a few rollups among general-purpose L2s, we expect there to be thousands of use-case-specific rollups in the future. These L2s are categorized by sector, application, or function. Other types of chains may be geared specifically toward hosting entire segments, such as rollups that host social media networks and applications that seek to build products and services for those social media networks.
This prediction is Van Eck It mainly points to the possibility that L2 solutions will perform better in terms of value than Ethereum over the next six years. The report also claims that layer 2 blockchains will benefit from Ethereum’s limited processing power and data storage and computation capabilities.
ETH price experiences bearish activity
today, Ethereum price It is on a downward trend after once again failing to surpass the $4,000 mark. Although the market is currently in a downward trend, a positive rebound is expected soon.
Compared to other notable coins in the cryptocurrency market such as Bitcoin, ETH has underperformed over the past month. As a result, there has been speculation within the cryptocurrency community that further declines are imminent.
ETH has fallen more than 10% since March after surging to $4,091 ahead of the Dencun upgrade. At press time, Ethereum was trading at $3,343, up 1% over the past day.
Its current market cap is $401.42 billion, up 1% in the last 24 hours. However, daily trading volume plummeted by more than 30% to $13.5 billion.
Featured image from iStock, chart from Tradingview.com
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