Polygon‘s zero-knowledge aggregation technology (zk-rollup) will assist in creating a Layer-2 chain for restaking crypto assets. Swell announced its choice of Polygon’s AggLayer to power its project. Ethereum’s Denizen upgrade has promoted the narrative of staking, restaking, and Layer-2 tokens, triggering a daily 7% increase in Polygon’s native token MATIC.
Restaking Project Selects Polygon’s AggLayer for Development
As Ethereum’s Denizen update went live on March 13th, the narrative of staking, restaking, and scaling caught the attention of market participants. The upgrade is expected to significantly reduce transaction costs for Layer-2 chains and potentially increase their adoption and usage. The restaking narrative, supported by major Ethereum scaling solutions like Polygon, has gained traction.
Polygon’s official announcement today indicates that the largest Ethereum scaling solution is preparing to power Swell’s restaking protocol. The DeFi network is using the protocol’s AggLayer, a scaling technology, for its restaking project.
What is the Goal?
Polygon’s AggLayer aims to solve scalability issues by providing access to liquidity across multiple Blockchains. Ethereum’s Denizen upgrade could increase the popularity of the Layer-2 token narrative and contribute to wider adoption of Polygon’s AggLayer among Web3 developers.
While MATIC’s price has risen by 7% within the day, it is currently trading at $1.2774 as Polygon’s native token.
November’s Move Still in Focus
As recalled from November, the Polygon Ecosystem Growth initiative took a strategic step to promote growth, completing a significant token distribution of 217 million MATIC tokens valued at $198 million.
This distribution was carried out for a group of 70 wallets in a short time. Closer examination of the recipients revealed striking results, with 32 wallets depositing 82.3 million MATIC tokens worth $74.9 million to central exchanges (CEX). These moves had sparked debates as they indicated a sell-off at the time.
As we mentioned yesterday, active addresses, i.e., those transacting on Polygon, have increased by 88%. Accordingly, the number rose from 1,719 to 3,232. This indicates growing confidence in the cryptocurrency MATIC.
