$LAYER As of February 11, 2025, here are the latest developments in the Layer 2 cryptocurrency landscape:

Ethereum's Dencun Upgrade Impact

Ethereum's Dencun upgrade has significantly reduced transaction costs on Layer 2 solutions. By introducing "blobs" for data storage, Layer 2 rollups like Optimism and Base have seen average transaction fees drop to approximately 4 cents and 3 cents, respectively. This reduction enhances scalability and efficiency for decentralized applications.

OKX's X Layer Mainnet Launch

OKX has launched its Layer 2 blockchain, X Layer, on the public mainnet. Built using Polygon's Chain Development Kit, X Layer aims to provide enhanced scalability and efficiency for decentralized applications. This move aligns with other major exchanges developing their own Layer 2 networks to improve transaction speeds and reduce costs.

Polygon 2.0 Vision

Polygon has unveiled its ambitious plan for Polygon 2.0, aiming to establish itself as the Value Layer of the Internet. The proposed upgrades include a network of ZK-powered Layer 2 chains interconnected through a novel cross-chain coordination protocol, offering unlimited scalability and unified liquidity.

Layer 2 Market Performance

Following the Dencun upgrade, Layer 2 cryptocurrencies have exhibited mixed performance. Tokens such as Polygon (MATIC) and Arbitrum (ARB) experienced gains, while others like Immutable X (IMX) and Celo (CELO) saw declines. The Dencun upgrade's introduction of a new data storage method is expected to reduce transaction costs on Layer 2 networks, potentially increasing activity and attracting more applications.

These developments highlight the ongoing efforts to enhance scalability, reduce transaction costs, and improve the overall efficiency of blockchain networks through Layer 2 solutions.