Top 5 Layer-2 Crypto Projects To Watch In Anticipation Of Next Ethereum Upgrade
With the heavily anticipated Ethereum Cancun upgrade scheduled for Q4 of this year, the time is ripe to take a closer look at L2 protocols.
The EIP-4844 - or Cancun - upgrade promises to reduce fees on Ethereum L2 solutions by an order of magnitude. It will introduce a groundbreaking concept known as proto-dank sharding, aimed at significantly reducing the costs associated with Roll-Ups.
In today’s article, we cover the top 5 L2 protocols and evaluate them based on their long-term viability from a fundamental perspective and their investment potential. We’ll take into account their technology, funding, development, and ecosystem.
1. zkSync
zkSync is an Ethereum Layer-2 scaling solution based on zkRollup technology.
It significantly improves the scalability of the Ethereum network by aggregating multiple transactions into a single proof, which is then submitted to the Ethereum mainnet.
As zkSync doesn’t have a token yet, we can’t evaluate its tokenomics and have to focus on fundamentals instead.
The project has so far raised an astounding $458 million from almost every major crypto VC firm.
