Ethereum's network revenues are set to recover as layer 2 (L2) scaling networks experience increased transaction activity, resulting in higher demand for data storage. In November, L2s have been posting over three times more transaction data to the Ethereum mainnet compared to March. Following the Dencun upgrade in March, Ethereum's revenues fell by up to 95% due to a migration of L2 transaction data to temporary off-chain storage known as 'blobs', which aimed to reduce user costs. Matthew Sigel from VanEck highlighted recent evidence of recovery, particularly driven by popular L2s like Base, Scroll, and World Chain. Sigel anticipates Ethereum could generate up to $66 billion in annual free cash flow by 2030, with Ethereum processing about $4 trillion in settlement value annually, surpassing even major payment networks. This growth is supported by mechanisms such as transaction fee burning and rewards for stakers. The recent political landscape could further influence crypto investments, potentially leading to more cryptocurrency products in the US market. However, competition remains from other protocols like Celestia and EigenDA in the data availability sector.

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