Across - Intent-powered Interoperability: What You Need to Know
Across x UniswapX, Rerating of Bridges, & More
Liquidity fragmentation is a problem that users and developers alike are constantly complaining about. The bridging & interoperability space has seen some volatility recently, with Wormhole’s W TGE proving as a catalyst for more scrutiny to be applied to the greater bridging ecosystem. This includes the likes of Synapse, Stargate, Axelar, and Across.
Across is a key player in the interoperability space, primarily servicing popular EVM chains. The protocol has recently been quick to ship some innovative products. This includes the creation of a new interoperable token standard for cross-chain intents, in collaboration with Uniswap. Uniswap X also offers intent-based crosschain swaps, so this collaboration aligns the two’s efforts rather than pitting them against one another. This strengthens Across’s positions relative to other interoperability players, which have also grown strong themselves. Wormhole recently introduced their own Native Token Transfers standard. Stargate is marching closer toward their V2 deployment.
In today’s edition, we’ll be going over how Across stacks up compared to the competition, the case for $ACX, and more…
Stay informed, stay alert ⬇
Introduction
In our Market Intel report, we express our view that Across ($ACX), which is a bridging protocol with a ~$70M market capitalization ~30% of ATHs, is positioned for substantial growth in the following months driven by two major catalysts and an upgrade to Across v3. Our overarching thesis is that the future of cross-chain transfers will be intent-based, and Across is in a unique position to solve the UX problem posed by having hundreds of L2s.
Key Takeaways
Across has rapidly gained traction throughout 2023 as its fundamentals have shone – portraying a future where intent-based bridges (more on this later) abstract away complexity, minimize gas consumption, and lower costs, creating a better user experience.
Across is poised for substantial growth, driven by the Dencun Upgrade reducing L2 transaction costs. High-valuation airdrops like $ZRO (by LayerZero) and $W (by Wormhole), may also lead to more focus on the sector and lead to a significant reprice for $ACX.
Across ranks as the fastest and cheapest solution to transfer assets between L2s, consistently outpacing other bridges in aggregator volume share. By using a network of specialized parties called relayers, it can fill orders denominated in native assets in a quick, secure, and capital-efficient manner.
The use of canonical assets and UMA’s optimistic oracle in Across’ bridging process reduces the vulnerability to security breaches and improves transaction efficiency compared to traditional and third-party bridges.
The use of Success Tokens for fundraising aligns investor incentives with long-term protocol success, mitigating risks associated with VC token dumping and employing a vesting schedule until June 30, 2025.
The establishment of the $ACX Emissions Committee points towards sustainable growth, financial stability, and a commitment to aligning the interests of stakeholders with protocol success.
With v3 imminent and more integrations with wallets and DEX aggregators, Across can continue growing its market share even further with the integration of upcoming chains such as Linea and Scroll.
Firstly, the Dencun Upgrade on March 13th is expected to significantly reduce transaction costs on Layer 2s. This reduction will likely encourage more activity and value flows between L2s, especially as ecosystems like Linea, Scroll, or Starknet start to grow. As more activity shifts to fragmented L2s and from L2 to L2 (as opposed to L1 to L2), we expect 3rd party bridges to grow in usage and market share.
Secondly, the highly anticipated airdrops of $ZRO and $W, both expected to debut at multibillion-dollar valuations, dwarf the current market cap of Across. This discrepancy suggests a potential for significant repricing of $ACX, reflecting its improved fundamentals and market positioning.
If you’re finding this information useful, you can access our full Across Market Intel for FREE.
Our full ~25-page report goes over the reasons why Across is primed to perform well in this market regime, the case for ACX, and more…
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