From Cointelegraph

April 19, 2025 11:00 am:

Crypto has made strides in transaction speed, but liquidity fragmentation remains a challenge. Vitalik Buterin notes the difficulties of coordinating across multiple chains. Siloed liquidity on different networks leads to higher fees and price disparities. Solutions like bridges and aggregators exist, but integration at the base layer is key to unifying liquidity and improving user experience.

The proliferation of chains risks driving users back to centralized exchanges. Fragmentation affects all ecosystems, not just Ethereum. Solutions like bridges and crosschain aggregators help navigate the liquidity maze, but true integration at the base layer is needed to unify liquidity. This requires chains to view themselves as interconnected rather than competition.

Automatic crosschain connections at the base layer can solve liquidity fragmentation by providing immediate access to the broader ecosystem’s liquidity. This reduces reliance on third-party bridges and improves security. Integrated routing mechanisms consolidate asset transfers, creating a seamless experience for users and developers. The emphasis on integration ensures a unified and liquid future for the crypto ecosystem.

Fragmentation is not unique to Ethereum and requires ecosystem-agnostic solutions. Building interoperability into blockchain infrastructure is crucial for unifying liquidity and improving user experience. The goal is to make accessing different chains feel seamless and familiar. Connectivity is key to ensuring the success of new networks and decentralized applications.

Read more at Cointelegraph: Every chain is an island: crypto’s liquidity crisis