- Swell is building a Layer 2 chain for restaking, powered by Polygon’s AggLayer.
- Ethereum’s Dencun upgrade has fueled the staking, restaking and Layer 2 narrative.
- MATIC price climbed over 7% on Wednesday.
Polygon’s zero-knowledge rollup technology (zk-rollup) will help build a Layer 2 chain for restaking crypto assets. Swell has chosen Polygon’s AggLayer to power its project, according to an announcement on Wednesday.
The Ethereum Dencun upgrade has ignited the Layer 2 token narrative, likely catalyzing 7% daily gains in Polygon’s native token MATIC.
Also read: Ethereum Layer 2 locks nearly $40 billion in assets as Dencun upgrade looms
Restaking project picks Polygon’s AggLayer for development
The staking, restaking and scaling narrative has garnered attention from market participants as Ethereum’s Dencun upgrade goes live on March 13. The upgrade is expected to dramatically lower transaction costs for Layer 2 chains, likely increasing their adoption and utility. The restaking narrative gathered ground, powered by large Ethereum scaling solutions like Polygon.
Polygon’s official announcement on Wednesday states that the largest Ethereum scaling solution is set to power a new restaking protocol by Swell. The DeFi network uses the protocol’s AggLayer, a scaling technology, for its restaking project.
The aggregation wave continues @swellnetworkio is developing a L2 restaking platform with Polygon CDK and plugging into the AggLayer.
— Polygon | Aggregated (@0xPolygon) March 13, 2024
made possible by @alt_Layer, @eigen_da and @chainlink
Innovation in the Polygon ecosystem is next-level, enhancing DeFi scalability and… https://t.co/aRMwCwd3KB
Polygon’s AggLayer claims to solve the scalability problem, providing access to liquidity across multiple blockchains.
Ethereum’s Dencun upgrade is the likely driver of the popularity of the Layer 2 narrative and is set to boost Polygon’s AggLayer adoption among developers in Web3.
MATIC price is up 7% on the day, Polygon’s native token is trading at $1.2774, at the time of writing.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Solana Price Forecast: SOL gains ETF boost amid $3 billion unlock fears
Solana (SOL) is down 1% on Tuesday following negative sentiment surrounding its upcoming $3 billion token unlock. Meanwhile, Franklin Templeton is likely entering the race for a Solana exchange-traded fund (ETF) following its filing for a Solana Trust in Delaware.

Ethereum Price Forecast: ETH risks a decline to $2,200 as long-term holders increase selling pressure
Ethereum (ETH) declined by 2% on Tuesday due to increased selling activity from long-term holders (LTHs) and a buy-the-dip strategy from whales.

UNI rallies as Uniswap Labs unveils Layer-2 Unichain on mainnet
Uniswap's native token, UNI, is up on Tuesday following the Mainnet rollout of its latest Unichain Layer 2 (L2) solution. Unichain promises to offer users faster and cheaper transactions than the Ethereum L1.

Mantra Price Analysis: OM social media mentions surge 500%, outperforming Bitcoin as traders bet on RWA assets
Mantra (OM) has demonstrated remarkable resilience, stabilizing around the $6 level after a 70% rally over the last 17 days.

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.