Modular Capital associate James Ho stated on social media that Layer 2 (L2) will quickly overtake Ethereum (ETH). His declare is predicated on the truth that Arbitrum has over $100 million in annual income and a internet revenue margin of 30-40%.

He predicts that after eip-4844/proto-danksharding, this margin will enhance to 90-95%.

From this angle, the annualized value of ETH is between $3 billion and $5 billion. The Layer 2 market is quickly transferring in the direction of unbelievable profitability.

Optimism follows an analogous sample, with annualized prices of round $60 million (about half the working price of ARB).

Nonetheless, each chains are at present single serializers with no OP/ARB tokens for fuel funds and no outlined utility.

Arbitrum achieved half of the ETH mainnet’s spot dex buying and selling quantity of $16 billion per 30 days, down from $32 billion per 30 days.

The txns/day by day energetic wallets are comparable, indicating that by way of financial exercise, L2 will quickly overtake ETH. Ho thinks the price of a single L2 will high $1 billion, a lot prior to anticipated.

Ho’s remarks spotlight a promising future for the Layer 2 market, as the fee benefit of utilizing L2 over ETH turns into more and more evident.