According to a well-known international financial firm, VanEck, Ethereum’s Layer 2 scaling networks are expected to reach a $1 trillion market capitalization by 2030.
These networks, created for certain use cases, seek to get around Ethereum’s data processing and storage constraints. There are 46 Ethereum layer 2 networks at the moment, and their combined locked value is $38.97 billion. At $18 billion, Arbitrum is the biggest network.
Because layer 2 networks offer superior transaction speed and user experience compared to Ethereum’s base network, analysts predict larger revenues on layer 2 networks. They do, however, issue a warning on the long-term worth of the majority of layer 2 tokens because of the fierce competition.
According to Van Eck, the network effect will lead to the emergence of hundreds of specialized layer 2 networks in addition to a few significant general-purpose chains. Because of its benefits, a lot more roll-ups are anticipated to use the zero-knowledge architecture.
