The highly anticipated Cancun upgrade promises to make Layer 2 (L2) transactions 10-100 times faster and cheaper, a game changer for Ethereum’s L2 ecosystem. The upgrade introduces a new storage method called “blob” to replace the costly and space-limited calldata storage, dramatically improving transaction efficiency.
Before #Cancun, L2 transactions had to be stored in the L1 transaction’s calldata, which was both expensive and limited in capacity. With the introduction of “blob,” L1 will now be stored in a new, more affordable, and spacious environment, enabling cheaper and faster L2 transactions.
To put the difference in perspective, 1,000 L2 transactions could require 10 calldata at a cost of 10 ETH. With “blob,” the same 1,000 transactions can now fit in just one blob, costing only 0.1 ETH. This makes L2 transactions 100 times cheaper and 10 times faster in terms of confirmation.
With the Cancun upgrade in sight, several L2 projects and tokens are poised to benefit from this fundamental shift. Key contenders include $ARB and $OP, the layer 2 dominators, which are expected to reap the most rewards from the upgrade.
Other projects worth considering include low-risk medium returns options like $Boba and $Metis, early Optimism forks that are currently undervalued. Medium-risk, high-returns options include early application-specific zkRollup projects, which could become prime targets for zk Layer2s once general zkRollup tokens are available.
While “The” Polygon ($MATIC) is not an L2 solution itself, its various ZK Layer2 solutions could experience growth as a result of the upgrade. Other tokens associated with Layer 2 ecosystems, such as $GMX, $GNS, $RDNT, $JOE, $SNX, $PERP, and $KWENTA, are also worth monitoring as they may benefit from the improvements brought about by Cancun.
Lastly, be on the lookout for potential airdrops, as they are expected to be significant in this evolving landscape. Don’t miss out on any tokens – comment below with your top picks and keep the conversation going!