Ethereum's Dencun Upgrade and Its Effect on Layer 2s | Layer 2 Review

Quick Reads and Hot Links Covering the People and Projects Who Are Scaling Ethereum


Dear Frens,

The Dencun upgrade went live yesterday and is a major milestone for Ethereum, being the largest upgrade since the network switched to Proof-of-Stake (PoS). This upgrade has significantly changed how data is stored on Ethereum, making it more accessible and cheaper to record L2 transactions. This has led to a drastic fall in transaction fees on several Layer 2 networks. In this issue’s editorial, we dig deeper into the Dencun upgrade and the fresh momentum it brings to Ethereum’s Layer 2.

This momentum is not only limited to the Ethereum L2 ecosystem. The Bitcoin Layer 2 ecosystem is also taking huge strides with native Bitcoin-based applications seeing increased interest and usage. The emergence of projects like Stacks, Rootstock, and Liquid, which use Bitcoin as a foundational settlement layer while scaling functionality, has contributed to this growth. The Stacks network, a companion chain for smart contracts built on Bitcoin, witnessed its Total Value Locked (TVL) break previous all-time highs, indicating strong adoption and usage of the network.

These updates suggest that the Layer 2 ecosystems, both for Bitcoin and Ethereum, are experiencing significant growth and adoption, with new projects and solutions being developed to address the inherent limitations of the underlying networks. The increasing interest in native Bitcoin-based applications and the growth of Ethereum's Layer 2 projects indicate a positive trend for the overall ecosystem.

Read on to get the latest updates, and keep yourself abreast of major L2 stories and news.

Contributors: Warrior, Lucent1, anointingthompson1, jengajojo, Tonytad, Boluwatife, KornektWinVerse


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