Investment management firm VanEck has made a bold prediction regarding the future of Ethereum Layer-2 (L2) networks, forecasting a valuation exceeding $1 trillion by 2030. Analysts Patrick Bush and Matthew Sigel believe that despite this optimistic projection, there are challenges ahead for the long-term success of these networks.
L2 networks operate on top of main blockchains like Ethereum, processing transactions separately to increase speed without compromising security or decentralization. VanEck’s analysis of 46 L2 networks focused on transaction pricing, developer and user experience, trust assumptions, and ecosystem size.
While Ethereum is expected to dominate 60% of the public blockchain market, the analysts express concerns about intense competition among L2 networks. They predict a saturated market with a collective Fully Diluted Valuation of $40 billion for the top seven L2 tokens, potentially adding $100 billion more with the entry of new projects.
Despite these challenges, the growth and development of L2 networks continue to attract interest from investors and developers in the blockchain and crypto sphere. In related news, Starknet has announced plans to introduce a “parallelization” feature to enhance transaction speed and efficiency on ETH L2 networks.
The future of L2 networks remains uncertain, but the potential for innovation and growth in the blockchain ecosystem is undeniable. Stay tuned for more updates on this evolving technology.
