- High Growth Potential in Layer-2 Markets
- ETH Gas Prices Bring L2 Fees at a Multi-year Low
- Sectors Benefiting from Low Layer-2 Gas Prices
A report by VanEck suggests significant growth in the Layer-2 market due to reduced Ethereum gas fees. The projected growth could reach 7100%, primarily driven by the Dencun Upgrade that significantly lowered transaction fees.
High Growth Potential in Layer-2 Markets
In August 2024, Ethereum's price fell sharply due to significant ETH sales by the Grayscale Ethereum Trust. This impacted many Layer-2 coins, presenting an investment opportunity in this segment. Analysts believe that timely investments could yield substantial returns. Significant growth in the Layer-2 market can be attributed to falling Ethereum gas prices following the Dencun Upgrade. According to OnchainHQ, the volume of funds in the Ethereum Layer-2 ecosystem reached $37 billion.
ETH Gas Prices Bring L2 Fees at a Multi-year Low
The issue of slow transactions in the Ethereum network, which led to high fees, was resolved with the Dencun Upgrade that introduced Proto-Dank Sharding. This reduced transaction fees by over 99%, significantly lowering Layer-2 fees. For example, in Polygon, fees dropped from 650 Gwei to 40 Gwei.
Sectors Benefiting from Low Layer-2 Gas Prices
The fall in fees has positively affected several sectors. Metaverses like Sandbox and Attack Wagon might become profitable again. Tokenization of real-world assets, including derivatives, is also seeing significant development. Lower fees facilitate the adoption of blockchain technology for everyday transactions and enhance cross-chain interoperability.
Layer-2 networks offer many advantages, such as low transaction fees, high scalability, and cross-chain capabilities while maintaining on-chain security. These factors can contribute to significant growth in the Layer-2 market, validating VanEck's $1 trillion market cap projection by 2030.
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