VanEck, a leading financial institution based in New York, shares the following insights: Ethereum Layer 2 (L2) solution. The company estimates L2's valuation at $1 trillion, highlighting its potential to outperform Ethereum. L2 technologies such as Zero Knowledge Rollup (ZKU) and Optimistic Rollup (ORU) address scalability by processing transactions from the main blockchain. This could potentially surpass Ethereum in revenue generation given the transaction limits of major blockchains.
Despite the optimistic outlook for L2; Van Eck We maintain a cautious stance on most L2 tokens. The company reasons that these tokens do not function as primary currencies within the cryptocurrency ecosystem. However, he acknowledges that rollups are emerging for niche applications such as social media networks. VanEck cites Optimism, Arbitrum, and Blast as key L2s and attributes their success to a vibrant ecosystem and strategic airdrops.
VanEck highlights the role of Airdrops in Ethereum L2 success
ArbitrumAccording to VanEck, Blast and Optimism are emerging as important players in the L2 space. Developing an attractive ecosystem was essential to their success. These achievements are consistent with the effective use of airdrops, which has received significant interest from the cryptocurrency community. According to DefiLlama data, Arbitrum's Total Value Locked (TVL) ranks him fifth with $3.18 billion. Blast and Optimism followed, securing 6th and 11th place respectively.
VanEck evaluates L2 We use a variety of criteria to determine success, including transaction cost and user experience. The company also considers trust assumptions, ecosystem size, and developer experience. These metrics help you evaluate the growth and adoption of your L2 solution.
Regulatory caution impacts Ethereum ETF applications
The regulatory environment continues to influence the trajectory of the cryptocurrency sector. Recently, the SEC postponed his VanEck decision. Spot Ethereum ETF application. This delay extends the sentencing deadline to his May 23, 2024 date and reflects continued regulatory vigilance. The SEC's hesitation reflects the broader uncertainty surrounding his Ethereum-based ETF application.
On the other hand, the co-founder of Ethereum Vitalik Buterin We've rethought the concept of Layer 3 (L3) solutions. He emphasized that for a layered approach to be effective, the various layers need to serve clear purposes.
Also read: Galaxy Digital plans to raise $100 million in venture funding with external support
The published content may include the personal opinions of the author and may be subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
✓ Share: