diff --git a/.github/workflows/test.yml b/.github/workflows/test.yml
index a7d3165a..2e22d686 100644
--- a/.github/workflows/test.yml
+++ b/.github/workflows/test.yml
@@ -17,6 +17,7 @@ jobs:
           - macos-latest
         deno:
           - "1.x"
+          - "2.x"
           - "1.33.1"
           - "canary"
           - "~1.32"
diff --git a/README.md b/README.md
index ad24fefd..385aa209 100644
--- a/README.md
+++ b/README.md
@@ -7,9 +7,9 @@ Set up your GitHub Actions workflow with a specific version of Deno.
 ### Latest stable for a major
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
-    deno-version: v1.x
+    deno-version: v2.x
 ```
 
 ### Latest stable for any major
@@ -17,7 +17,7 @@ Set up your GitHub Actions workflow with a specific version of Deno.
 Targets the latest major, minor and patch version of Deno.
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: vx.x.x
 ```
@@ -25,7 +25,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Specific stable
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: "1.8.2"
 ```
@@ -33,7 +33,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Semver range
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: "~1.7"
 ```
@@ -41,7 +41,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Latest canary
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: canary
 ```
@@ -49,7 +49,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Specific canary
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: e7b7129b7a92b7500ded88f8f5baa25a7f59e56e
 ```
@@ -57,7 +57,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Latest release candidate
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: rc
 ```
@@ -65,7 +65,7 @@ Targets the latest major, minor and patch version of Deno.
 ### Specific release candidate
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: 2.0.0-rc.1
 ```
@@ -76,7 +76,7 @@ The extension can also automatically read the version file from
 [`.tool-versions`](https://asdf-vm.com/manage/configuration.html#tool-versions)
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version-file: .tool-versions
 ```
@@ -85,7 +85,7 @@ The extension can also automatically read the file from
 [`dvm`](https://github.com/justjavac/dvm).
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version-file: .dvmrc
 ```
@@ -95,7 +95,7 @@ The extension can also automatically read the file from
 This is useful when you want to install different versions of Deno side by side.
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   with:
     deno-version: canary
     deno-binary-name: deno_canary
@@ -108,7 +108,7 @@ You can determine the release channel reading back the `release-channel` output.
 Valid values are `stable`, `canary` and `rc`.
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   id: deno
   with:
     deno-version: canary
@@ -126,7 +126,7 @@ For stable and rc versions, the output will be the regular semver version
 number.
 
 ```yaml
-- uses: denoland/setup-deno@v1
+- uses: denoland/setup-deno@v2
   id: deno
   with:
     deno-version: canary
diff --git a/src/version.mjs b/src/version.mjs
index 8f5f8f87..8e20ab5b 100644
--- a/src/version.mjs
+++ b/src/version.mjs
@@ -23,7 +23,7 @@ const GIT_HASH_RE = /^[0-9a-fA-F]{40}$/;
  * @returns {VersionRange | null}
  */
 export function parseVersionRange(version) {
-  version = String(version) || "1.x";
+  version = String(version) || "2.x";
   version = version.trim();
 
   if (version === "canary") {