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’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.
Author
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.
