Van Eck: Ethereum L2 Scaling Networks’ Market Cap Will Reach $1T in 6 Years

According to analysts at Van Eck, Ethereum’s layer 2 scaling networks are expected to reach a market capitalization of $1 trillion in six years. These networks will consist of thousands of specialized chains for different use cases.

This prediction is based on Ethereum’s challenge of limited capacity to process, store, and compute data, which layer-2 blockchains are set to address.

Analysts Bush and Sigel explain that they arrived at the $1 trillion estimate by assuming that Ethereum will hold a 60% market share among all public blockchains and considering the volume of assets within the ecosystem.

Currently, there are 46 Ethereum layer 2 blockchains with a total value locked of $39 billion, with the largest being Arbirtum with $18 billion, according to L2BEAT.

The analysts also note that Ethereum’s dominance in smart contracts faces a major obstacle in terms of scalability.