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📌 VanEck’s view on Layer 2 Ethereum: $1 trillion by 2030

Recently, the prestigious investment firm VanEck published its vision for the medium-term future of Layer 2 ethereum. Ethereum

– Recently, the prestigious investment firm VanEck published its vision for the medium-term future of Layer 2 ethereum.

The hedge fund predicts a bright future for this industry niche, which could reach a valuation of $1 trillion by 2030.

However, in the meantime, many solutions will not be created in a highly competitive environment and parallel failures are expected.

The following is a detailed description of the situation.

U.S. fund manager VanEck, which recently attracted attention with its application to create an ETH-based spot ETF with the SEC, has demonstrated an opposite medium-term view on the future of Ethereum’s second-tier solutions.

According to a study by a prominent investment firm, the sector could grow to $1 trillion by 2030 in an environment where the blockchain can overcome the scalability limitations it currently faces.

Solutions to scalability are cited such as optimization and zk roll-up.

Specifically, VanEck analysts Patrick Bush and Matthew Siegel predict that Ethereum will eventually take 60% market share of all public decentralized networks, establishing itself as the most widely used cryptocurrency network in the world

Ethereum’s second-tier market is currently valued at $39 billion, led by Arbitrum, Optimism, and Base:

On the one hand, VanEck is mostly positive about this niche Ethereum market; on the other hand, he believes that competition in this area will make some projects obsolete.

As for the long-term prospects for many of these Tier 2 networks, the company is “generally bearish” and a significant portion of them are doomed to disappear.

VanEck predicts that many of the 46 L2 networks currently on the market will collapse due to the emergence of dozens of other competitors, despite positive prospects for attracting new investment.

As L2Beat’s data shows, the top three Layer 2 solutions on ethereum alone have captured about $29.3 billion, or more than 70% of the entire TVL sector.

Siegel and Bush also believe that the supply of these infrastructure tokens is too large and not yet covered, which could hurt the market through overly aggressive dilution.

Below is the analysts’ report:

The first seven L2 tokens already have a cumulative FDV of $40 billion, with many strong launches planned in the medium term. This means there could be another $100 billion of L2 tokens on the market in the next 12-18 months. For the cryptocurrency market, this seems like too big a bridge to absorb even such a limited supply without a significant discount.

In such a scenario, only the most innovative solutions that can deliver a constant influx of active users and volumes on the blockchain will be able to survive and take advantage of the growth of the Ethereum world.”

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