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Ethereum Bulls Have Reason to Worry If L2s Remain Dominant, Says VanEck Analyst

Author: Content Editor
According to an analyst on Twitter, Ethereum's price projection could drop by 67% to $7,300 instead of reaching $22,000 by 2030. The analyst's model considers Ethereum's growth in total value locked and the amount of Ethereum consumed by the network. Data from the past four months shows that layer-2 networks are taking more value from Ethereum than previously thought. The original model assumed a 90:10 split between Ethereum and layer-2 networks, but the current trend is at 10:90 in favor of layer-2 networks. The analyst suggests that fee sharing models between Ethereum mainnet and layer-2 networks could help reverse the declining profitability. Ethereum co-founder Vitalik Buterin has advocated for maximum interoperability and a unified ecosystem. Ethereum's performance has lagged behind other cryptocurrencies, and its recent struggles can be attributed to factors such as the performance of spot Ethereum ETFs and the lack of clarity in its investment thesis compared to Bitcoin.

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