Coin Bureau predicts that Ethereum (ETH) Layer 2s will play a dominant role in crypto payments

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A popular crypto analyst claims that layer 2 projects built on Ethereum (ETH) will likely dominate the crypto payments space in 2023.

In a new strategy session on YouTube, pseudonymous Coin Bureau host Guy told his 2.19 million subscribers that using crypto for payments will become more popular this year.

My fifth crypto prediction for 2023 is that crypto payments will become more mainstream. This will again be due to a combination of better interfaces, regulatory clarity increasing liquidity, and most importantly, an increase in scalability that finally makes crypto payments feasible.

Guy says Layer 2s will play a vital role in the growing 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 considering 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 Ethereum smart contract platform. The planned Ethereum Improvement Proposal 4844 (EIP 4844) aims to improve blockchain scalability using shard blob transactions.

Additionally, the developers will implement the Ethereum Improvement Proposal, or EIP-4844, next summer. For those unfamiliar, EIP 4844 will increase the scalability of Layer 2s on Ethereum between 10x and 100x. Since most Layer-2s have already processed thousands of TPS, such an increase will put them on a par with Visa.

Source: Office Corner/YouTube

At the time of writing, Ethereum is changing hands at $1,212.

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