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Ethereum Layer 2 Solutions Poised for Growth with Upcoming Dencun Upgrade

Ethereum’s much-anticipated Dencun upgrade is set to supercharge the network’s layer 2 scaling solutions. Dencun introduces data sharding, which will enable cheaper transactions and faster throughput for layer 2 protocols built on Ethereum. This positions several major layer 2 projects for significant growth.

Arbitrum and Optimism are two of the leading optimistic rollup solutions on Ethereum. They offload transactions off the main chain while still leveraging Ethereum’s security. Dencun will make these rollups even faster and more cost-efficient. Arbitrum already has over 300 dApps and $12 billion in total value locked. Meanwhile, Optimism recently rebranded as a “superchain” that can combine multiple layer 2s.

Immutable X focuses on highly scalable infrastructure for blockchain gaming. It currently handles 9,000 transactions per second and offers instant, gas-free NFT trading. With Dencun, it could see a surge in game developers building on its platform. Its native IMX token has stagnated in price but could awaken with greater adoption.

Polygon provides a high-speed sidechain to ethereum handling over 3 million daily transactions. Its upcoming Polygon 2.0 aims to combine multiple zero-knowledge powered chains. Polygon also runs a ZK-rollup layer 2 that stands to gain enormously from Dencun’s data efficiencies.

Overall, Dencun will supercharge transaction speeds and slash costs for established layer 2 players like Arbitrum and Optimism. It also lowers the barriers for new layer 2 protocols launching after Dencun’s release. Investor interest in layer 2 solutions is surging in anticipation of this Ethereum upgrade.