VanEck predicts Ethereum Layer 2 tokens will reach $1 trillion valuation by 2030 | Headlines | News | CoinMarketCap
04/04/2024 19:06
The Ethereum Layer 2 market is expected to reach a valuation of at least $1 trillion by 2030, according to a report from investment firm VanEck. …
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Published on April 04, 2024 11:58 GMT+00:00edited on April 04, 2024 12:01 GMT+00:00
The Ethereum Layer 2 market is expected to reach a valuation of at least $1 trillion by 2030, according to a report from investment firm VanEck.
VanEck calculated its $1 trillion base case valuation for Layer 2s by applying a free cash flow multiple of 25 to its expectations of future cash flows, assuming an Ethereum ecosystem smart contract market share of 60%. VanEck estimated the cash flows by projecting transaction revenues (inclusions of transactions on a blockchain) and maximal extractable value (revenue derived from the ordering of transactions) for the Layer 2 networks’ anticipated total addressable market.
VanEck’s estimated net revenue for the Layer 2 market by 2030 comes in at around $41 billion, leading to a fully diluted valuation of $1.02 trillion after applying the …