Before 2020, I thought about several limitations of blockchain technology and one of them was the lack of interoperability between assets on different chains: tokens on Ethereum can only be swapped on UniSwap, while tokens on BSC is only available on PancakeSwap. Usually, the simplest way to swap them with each other is to buy and sell on CEX.
However, the story was different when the cross-chain concept attracted investors' attention. Initially we had simple bridges, then we had cross-chain focused projects like Polkadot, or projects that wanted to become blockchain-Hubs like Cosmos, or some Layer-1 want to support multiple sub-blockchain like Avalanche.
Cross Chain Swap: The Future of Decentralized Token Exchanges in Blockchain TechnologyThe market is operated by circulation of money between each sector in each ecosystem and between ecosystems. 2020 cycle was good for Defi growth but we haven't seen much value in cross-chain. Layer-0 projects focusing on cross-chain have developed very well in crypto winter 2022, I hope that they will create great momentum for crypto market to grow and create an impressive boom in next crypto 2024 cycle.
Among cross-chain projects, Polkadot is my favorite project in terms of ideas, solutions and development speed. Although the DOT and tokens of projects in this ecosystem have not had an impressive recovery like Avalanche, I still believe in their potential.
What do you think about the cross-chain trend in crypto market? Is there a cross-chain project you particularly love?