2024 has been most unkind to altcoins. And even some previous bull market darlings are not immune.

Among some of the biggest losers in the top 100 projects in the last year, we have Quant, Arbitrum, Cosmos, XRP, Litecoin, Aptos, and Polygon (MATIC). In addition, we know that more than 90% of alts NEVER reclaim their old all-time high after a bear market.

I hope you know that. We talk about this here frequently. So it begs the question, can these blue chip projects find their footing again? And more specifically, can MATIC? Is MATIC Dead? Let’s see what we’ve found out about Polygon.

The Agg Layer

Layer 1 chains not named Bitcoin and Solana have taken a hit and have yet to recover in 2024 so far. Polygon is down 30% in the last year and ~25% in the last 90 days. So we are asking the question “Is MATIC Dead?” The biggest current innovation MATIC is up to is its Aggregation or Agg Layer.

Aggregation covers one of the industry’s biggest problems: Fragmented liquidity. Crypto is bridged from ETH to some L2 and then it’s trapped there. Only apps on that L2 can use that liquidity. That means there are time and financial costs to move it from one L2 to another. So most don’t, even when they have a good reason to.

The Agg Layer is like a cross-chain communication and gas-paying system. That means that Optimism users will be able to share their liquidity with Arbitrum dApps. And vice versa. This alone would be a huge benefit. But it does more than that.

Developers can use it to onboard more users. Appchains often do better with onboarding than most. They and other consumer chains see the most benefit from using Agg Layer. Build it once and deploy it across many chains. Plus, there is no bridging or wrapping of tokens involved. Both users and developers like that.

That’s one less risk. This clip does a great job of explaining the benefits for developers. They can concentrate on their protocol and worry less about airdrops liquidity mining and other things to power up a marketplace for their app. The liquidity will already be there if users like what you built. Oh yeah, and gas fees are cheaper for everyone too.

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