A popular crypto analyst says layer-2 projects built on Ethereum (ETH) will likely dominate the crypto payments space in 2023.
In a new YouTube strategy session, pseudonymous Coin Bureau host Guy tells his 2.19 million subscribers that using crypto for payments will become more popular this year.
“My fifth crypto prediction for 2023… that’s that crypto payments will become more common. This will again be due to a combination of better frontends, regulatory clarity increasing liquidity and, most importantly, an increase in scalability that finally makes crypto payments feasible.”
Guy says layer-2s will play a critical role in the increasing adoption of crypto payments. Layer-2s are crypto projects designed to increase the number of transactions per second (TPS) that a smart contract platform can process.
“This prediction comes from a series of headlines I saw over the summer about Ethereum founder Vitalik Buterin saying how layer-2s on Ethereum will power crypto payments. This makes sense given that Ethereum is the most secure base layer to have for a payment system besides Bitcoin.”
He says the rise of layer-2 dominance with crypto payments is more likely with an upcoming upgrade to the smart contract platform Ethereum. The planned Ethereum Improvement Proposal 4844 (EIP 4844) is meant to improve the blockchain’s scalability using “shard blob transactions.”
“Moreover, developers will be implementing Ethereum improvement proposal, or EIP-4844 sometime next summer. For those unfamiliar, EIP 4844 will increase the scalability of Layer-2s on Ethereum by between 10x and 100x. Given that most Layer-2s already processed thousands of TPS, such an increase will put them on a par with Visa.”
At time of writing, Ethereum is changing hands at $1,212.
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