In the current bearish market conditions impacting various cryptocurrencies, an asset management firm has released a significant forecast concerning the Layer 2 (L2) network of Ethereum. VanEck predicts that the Ethereum L2 network's value could surpass $1 trillion by the year 2030.

Layer 2 networks play a crucial role as secondary systems that are constructed on the Ethereum blockchain to enhance speed and scalability. VanEck's analysts, Patrick Bush and Matthew Sigel, have conducted an evaluation of 46 L2 networks based on different criteria and anticipate growth in "rollups," a particular scaling system.

Upon assessing the L2 network, it becomes evident that Arbitrum leads the pack with over $18 billion in locked tokens out of a total of $36 billion distributed across all networks. VanEck also anticipates that Ethereum will maintain a dominant position in the crypto market by securing an approximate 60% share among public blockchains. This projection is linked to the substantial number of assets within the Ethereum ecosystem.

Despite their optimism, the analysts at VanEck express reservations regarding the future sustainability of numerous L2 networks in light of their continuous evolution and advancement. Moreover, they stress the significance of elements such as transaction costs, developer capabilities, user experience, and ecosystem size to ensure the lasting progress of the L2 network.

VanEck further cautions about the intense competition prevailing among L2 networks and the potential oversupply of L2 tokens in the market. They warn that the crypto market may face challenges in absorbing new tokens without offering substantial discounts.

In addition to VanEck's forecast regarding Ethereum's Layer 2 network, the current Total Value Locked (TVL) on Ethereum is noteworthy, standing at over $50 billion, with approximately 1,030 protocols operating on Ethereum.

Although Ethereum's TVL is impressive, the current trading price of Ethereum is around $3,350, with a recent 1.1% increase in the past 24 hours. Over a longer timeframe, Ethereum's price has experienced a decline of nearly 6% in the last 7 days and over 4% in the last 30 days.