VanEck, one of the leading investment managers, recently announced that Ethereum's layer-2 (L2) networks will reach $1 trillion by 2030.
In the report prepared by Van Eck's senior digital asset investment analyst Patrick Bush and head of digital assets research Matthew Sigel, they stated that they expect layer-2 networks to surpass Ethereum in revenue generation to solve scalability issues.
Analysts expect L2s to outperform Ethereum's main blockchain, noting that most L2 tokens will rank high in the cryptocurrency ecosystem.
At this point, VanEck analysts identified VanEck, Optimism, Arbitrum and Blast as the leading L2s, and attributed the success of these L-2s to having a live ecosystem and making sensational airdrops.
“There are currently 46 Ethereum L2s with a total value of $39 billion, the largest of which is Arbitrum at $18 billion.
At this point we expect L2 revenues to surpass Ethereum because Ethereum cannot match the transaction volume or user experience of L2s.
Ethereum's dominance in smart contracts faces a critical hurdle: scalability.
“While the Ethereum network offers unparalleled security and decentralized governance, transaction fees and processing times increase rapidly as usage increases.”
*This is not investment advice.
