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Polygon powers restaking protocol developing L2 chain, plugs into MATIC’s AggLayer

  • 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 powers restaking protocol developing L2 chain, plugs into MATIC’s AggLayer
Ekta MouryaEkta MouryaFXStreet

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. 

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. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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