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VanEck, a financial giant headquartered in New York, recently outlined The base case valuation of the Ethereum Layer 2 (L2) solution is $1 trillion.
L2 solves the scalability problem by processing most transactions from the main blockchain. The main types of L2 include zero-knowledge rollup (ZKU) and optimistic rollup (ORU).
In its lengthy report, VanEck predicts that L2 will be able to surpass Ethereum in terms of revenue due to its limited transaction throughput. That said, the company is bearish on most L2 tokens as they are not base money in the cryptocurrency ecosystem.
VanEck believes that in the future we will see many rollups for specific use cases, replaced by a few general-purpose L2s. For example, you can use a separate rollup to host your social media networks.
The company cites Optimism, Arbitrum, and Blast as L2s that have successfully built very vibrant ecosystems. Their success was partially achieved through the success of their airdrop, which was able to garner a lot of interest within the cryptocurrency community.
To measure the level of success of a particular Layer 2 solution, VanEck uses variables such as transaction price, user experience, trust assumptions, ecosystem size, and developer experience.
According to data provided by DefiLlama, Arbitrum is the fifth largest protocol by total value, with a total value of $3.18 billion. Blast came in 6th place with $1.3 billion. By the way, Optimism ranks 11th with $1.13 billion.
In other news, Ethereum co-founder Vitalik Buterin recently said: revisited His post on Layer 3 (L3) solutions states that for such solutions to be reasonable, different layers are considered to have different purposes.
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Alex Dovnya
