VanEck Forecasts $1T Market Cap for Ethereum Layer 2 by 2030

• VanEck projects Ethereum’s Layer 2 market cap to hit $1 trillion by 2030.
• Ethereum expected to secure over 60% market share among public blockchains.
• Leading seven Ethereum Layer 2 tokens valued at $40 billion, may reach $100 billion.

VanEck, a reputable investment firm, released a report on April 3, projecting that Ethereum’s layer 2 scaling solutions could achieve a market capitalization of $1 trillion by 2030. Analysts Patrick Bush and Matthew Sigel, known for their insightful analysis, highlighted the potential of these networks to significantly improve the blockchain’s scalability and efficiency.

Furthermore, the analysts predicted that Ethereum is poised to capture over 60% of the total market share among all public blockchains. Addressing the main objective of the layer 2 solutions, Bush and Sigel pointed out that their development is aimed at tackling Ethereum’s fundamental issue of having a “limited capacity to process, store, and compute data.”

“Ethereum’s dominance in smart contracts faces a critical hurdle: scalability. While the network offers unparalleled security and decentralization, transaction fees and processing times soar when usage intensifies.”

VanEck’s analysis delved into various aspects of the Layer 2 framework, including the experience for developers and users, assumptions about trust, the cost of transactions, and the breadth of the ecosystem. The report underscores that Layer 2 solutions, such as Optimistic Roll-Ups and Zero-Knowledge Roll-Ups, specifically address Ethereum’s scalability issues, a crucial aspect of the blockchain’s future growth.

Furthermore, the researchers predict a remarkable increase in the Total Value Locked (TVL) within the Layer 2 blockchains. The report suggests that Ethereum’s Layer 2 solutions are set to capture a substantial share of the transaction value and TVL.

Additionally, the report highlights the unpredictable nature of the valuation of Layer 2 tokens. The analysts have observed that the leading seven Layer 2 tokens based on Ethereum have a combined fully diluted valuation of $40 billion. They note that with the introduction of more projects on the blockchain shortly, this valuation could escalate to $100 billion.