Van Eck analysts have a cautiously optimistic view on Layer 2 (L2) tokens, expecting them to navigate through intense competition into a prosperous future.

They predict that Ethereum's layer 2 scaling solutions will achieve a remarkable milestone of $1 trillion in market capitalisation within six years, attributing this growth to the specialisation of thousands of use case-specific chains.

These advancements are aimed at addressing Ethereum's (CRYPTO:ETH) critical bottleneck - its limited ability to efficiently process, store, and compute data.

The forecast by Van Eck's senior digital assets investment analyst, Patrick Bush, and head of digital assets research, Matthew Sigel, outlines a visionary future where Ethereum commands 60% of the market share across all public blockchains.

This projection is based on a detailed analysis of the potential volume of assets within the Ethereum ecosystem, highlighting the underlying value proposition of its layer 2 scaling networks.