Unlock your trading potential! Become a verified Bitget elite trader and earn 10,000 USDT to help skyrocket your profits. Join now and start your journey to success!
Share link:In this post: ETH might struggle to reach $10k by 2030 if L2 networks continue to get most of the revenue. VanEck research projects that Ethereum might need to adjust its roadmap to address L2 value extraction. ETH is up 9% in the past seven days even as it underperforms compared to major L1 tokens.
VanEck’s head of research, Matthew Sigel, predicted that ETH might continue struggling if Ethereum layer-2 networks continue to take value from it. Sigel expressed this view on X, noting that unbalanced conditions between the network and its L2s could prevent ETH from reaching $22,000 by 2030, as earlier predicted.
According to Sigel, VanEck predicted that ETH will be worth $22,000 by 2030 based on the expectation that Ethereum and its layer 2 networks will split total value locked (TVL) and MEV at a 50:50 ratio. While this has held true, VanEck has noticed a change in its model that expects Ethereum to split transaction revenue with L2s at a 90:10 ratio. Instead, the opposite has happened.
He said :
“Our original model assumed 90:10 split on transaction revenue between Ethereum and L2s (this is the extracted value that Ethereum would take from L2s from blob fees, proving fees and other fees like call data fees). The actuals are currently 10:90 in favor of L2s (past 4 months of data).”
Based on the current revenue split, Sigel believes the L2s are taking value from the base ETH network. If conditions stay this way, the price target might fall by two-thirds, dropping to just over $7,300 by 2030.
Sigel’s comments join a series of opinions on Ethereum’s performance in relation to L2s since the Dencun upgrade in April, which created blobs and drastically reduced fees on the L2 networks.
See also Global central banks break away from the Federal Reserve
0
0
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
The total market size and market share of Meme have been continuously growing, showing no obvious signs of stagnation. Undoubtedly, it is the fastest horse on the track.