Leading investment firm VanEck is bullish on the prospects for Layer 2 (L2) networks on Ethereum, predicting the segment will reach $1 trillion in market capitalization by 2030.

L2 solutions for the Ethereum network are gaining popularity by solving key mainnet scalability issues. VanEck believes that demand for these solutions will only grow, with the segment's market capitalization reaching an impressive $1 trillion over the next 6 years.

There are currently 46 Layer 2 networks targeting Ethereum, with a total market capitalization of $28 billion, according to CoinMarketCap.

VanEck's forecast is based on an in-depth analysis of potential revenue streams, taking into account factors such as transaction volume, market share of smart contract platforms and projected growth of assets backed by the Ethereum ecosystem.

Layer 2 solutions for Ethereum provide a more efficient method of processing data, increasing the performance and scalability of the main network. $ETH