Van Eck’s analysts were bearish on L2 tokens due to competition, but envisioned a future with thousands of use-specific chains.
Ethereum’s layer 2 scaling networks will hit a $1 trillion market capitalization in six years and will be made up of thousands of use case-specific chains, according to analysts from investment manager Van Eck.
Layer-2 blockchains are set to capitalize on Ethereum’s “primary challenge” — its “limited capacity to process, store, and compute data,” Van Eck’s senior digital assets investment analyst Patrick Bush and digital assets research head Matthew Sigel said in an April 3 report.
Busha and Sigel reached their $1 trillion market cap prediction by estimating Ethereum would take up 60% of the market share across all public blockchains and then estimating the volume of assets within the Ethereum ecosystem.
