Ethereum L2s Could Surpass Main Blockchain

Ethereum L2s Could Surpass Main Blockchain

Ethereum L2s Could Surpass Main Blockchain

VanEck, predicts that Ethereum L2s solutions could be worth a trillion dollars, potentially surpassing Ethereum itself.

VanEck, a large financial institution with headquarters in New York, has provided some views about the layer-2 (L2) solutions that Ethereum offers.

The company forecasts that Ethereum L2s will be worth one trillion dollars, underscoring the fact that they have the potential to outperform Ethereum.

Ethereum L2s technologies, such as zero-knowledge roll-ups (ZKUs) and optimistic roll-ups (ORUs), can address the issue of scalability by processing transactions off of the primary blockchain.

Given the restrictions on the leading blockchain’s transaction capabilities, they may be able to generate more money than Ethereum. VanEck continues to be cautious on most Ethereum L2s tokens, although the forecast for L2s is optimistic.

The company argues that these tokens do not serve as the primary currency within the cryptocurrency ecosystem. On the other hand, it recognizes the advent of roll-ups tailored to specific uses, such as social media networks.

VanEck Highlights Airdrops’ Role in Ethereum L2s Success

VanEck attributes the success of Optimism, Arbitrum and Blast to thriving ecosystems and strategically placed airdrops. After their respective emergences, VanEck asserts that arbitrum, blast and optimism have emerged as critical participants in the L2 market.

Their ability to create exciting and engaging ecosystems has been essential to their success. All of these accomplishments are in line with the efficient utilization of airdrops, which have garnered a significant amount of interest from the cryptocurrency community.

DefiLlama’s statistics place Arbitrum fifth in terms of total value locked (TVL), boasting a total of $3.18 billion. After that, Blast and Optimism come in at the sixth and eleventh ranks, respectively, among the results.

VanEck evaluates the success of Ethereum L2s transactions using a variety of metrics, including transaction costs and user experience. The company also considers the scale of the ecosystem, the experience of developers, and the trust assumptions.

When assessing the expansion and adoption of Ethereum L2s solutions, these metrics are helpful. The regulatory environment continues to exert its influence on the trajectory of the cryptocurrency business.

The SEC has recently delayed its judgment regarding the spot Ethereum ETF application VanEck submitted. We have implemented this extension, extending the verdict deadline to May 23, 2024, in light of ongoing regulatory caution.

When it comes to Ethereum-based exchange-traded fund applications, the SEC’s reluctance is reflective of a broader uncertainty.

Although this was happening, Vitalik Buterin, one of the co-founders of Ethereum, revived the idea of layer-3 (L3) solutions. He underlined that for a layered strategy to be effective, the various layers should serve different goals separately. 

Read Previous

SingleInterface Raises $30M to Boost Global Growth

Read Next

Vana Unveils Reddit Data DAO