Following the recent Dencun upgrade, Ethereum's Layer 2 networks are experiencing unprecedented growth, with significant reductions in transaction costs and a surge in activity. Prior to the upgrade, the average transaction cost on Layer 2 Optimism was $0.23, which has now dropped to less than a cent. This development has led to a new all-time high for layer 2 activity, with daily transactions on Ethereum rollups doubling or even tripling. The upgrade has not only improved Ethereum's competitive positioning but also highlighted its multi-year head start on Layer 2 solutions. Ethereum's ecosystem is benefiting from a 'trustless composability' network effect, making it more attractive for other L2s to cohabit within its network. This growth in the Layer 2 space is a testament to Ethereum's robust framework and its potential to further expand the inhabitable surface area for decentralized applications.