Every chain is an island: crypto’s liquidity crisis
Opinion by: Jin Kwon, co-founder and chief strategy officer at Saga
Crypto has come a long way in boosting transaction throughput. New layer 1s (L1s) and side networks offer faster, cheaper transactions than ever before. Yet, a core challenge has come into focus: liquidity fragmentation — the scattering of capital and users across an ever-growing maze of blockchains.
Vitalik Buterin, in a recent blog post, highlighted how scaling successes have led to unforeseen coordination challenges. With so many chains and so much value splintered among them, participants face a daily tangle of bridging, swapping and wallet-switching.
While these issues affect Ethereum, they also affect nearly every ecosystem. No matter how advanced, new…
