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How To Fix Ethereum’s Fragmentation Problem

The Ethereum ecosystem stands at a pivotal moment. Over the past four years, scaling challenges have been addressed through Layer-2 (L2) solutions, rollups, and technological breakthroughs, expanding from processing 15 transactions per second to thousands, with costs dropping from $50 per swap to mere cents. The rollup-centric roadmap worked – it worked almost too well.
This success has introduced an unexpected challenge: fragmentation. With over 50 L2s and more in development, Ethereum has become a maze of isolated chains. Users now juggle multiple networks, bridge assets, and navigate complex processes to perform basic actions.
The irony? Transactions may be faster and cheaper, but the overall user experience sucks!
The Cost of Fragmentation
Fragmentation is more than a minor inconvenience – it’s becoming an existential threat to Ethereum’s future. Users face the daunting tasks of managing multiple networks, bridging assets, and executing intricate processes. A simple action, such as buying a token, may require switching networks, bridging assets, and multiple transactions. Each step introduces friction, confusion, and opportunities for error.
The impact on liquidity is even more severe. Capital becomes trapped in silos, reducing market efficiency and increasing costs for all participants. DeFi protocols struggle to maintain deep liquidity across multiple chains, forcing users into worse prices or convoluted multi-step processes.
For developers, the situation is equally challenging. Choosing which L2s to support, managing multiple deployments, and building complex bridging infrastructure stifles innovation and raises barriers to entry for new projects.
ERC-7683: The Standard for a Unified Ethereum
This is why we at Across, alongside Uniswap Labs, have proposed ERC-7683, a standard that allows Web3 apps to express complex multi-step crosschain transactions as a single user request that is executed by a shared network of relayers. By standardizing how these requests are expressed, ERC-7683 enables any crosschain action in the Ethereum ecosystem – irrespective of origin or destination chain – to feel as seamless as operating on a single chain.
ERC-7683 standard has undergone multiple rounds of community feedback and is broadly supported by over 50 protocols including major projects like Arbitrum, Base, and Optimism and it has the support of the Ethereum Foundation’s L2 Interop working group.
At its core, ERC-7683 simplifies cross-chain operations. Instead of manually managing network switches and bridges, users express what they want to achieve. For example, swapping tokens on Base using funds from Arbitrum becomes a one-click process. Behind the scenes, a network of competitive solvers races to fulfill these intents within seconds, handling all the complexity.
This intents-based architecture separates the user’s desired outcome from the mechanical execution, eliminating the need for users to understand or interact with bridges. The result is a “home base” experience, where users can interact with the entire Ethereum ecosystem as if it were one chain.
Some argue that users don’t care about cross-chain – they just want things to work. They’re absolutely right. This is precisely where ERC-7683 comes into play. It enables developers to abstract away all the chain complexity while still leveraging the scale and efficiency of a multichain ecosystem. Users benefit from the best of both worlds: the simplicity of one chain with the power of many.
ERC-7683 is not theoretical, it ius already being used in production through Across implementation, which has processed over $18B in cross-chain volume. The standard builds upon years of development of Across’ solver network, extending it into an open and flexible framework that others can build upon.
A Vision for 2025: One Ethereum
Imagine Ethereum in 2025: Users open their wallets and see all their assets across every chain in one view. They interact with any application on any L2 without ever thinking about bridging or network switching. Developers build applications once and seamlessly reach users everywhere. Liquidity flows freely across the ecosystem, maximizing capital efficiency and minimizing costs.
This isn’t just a dream – it’s becoming reality. ERC-7683 delivers the two-second crosschain execution speeds needed for seamless experiences. And by standardizing crosschain interactions, it enables a new generation of applications that treat the entire Ethereum ecosystem as their canvas.
Beyond Technology: The Path to Mass Adoption
While ERC-7683 is a technical standard, its implications extend beyond technology. By resolving fragmentation, it addresses one of the most significant barriers to mainstream adoption. DeFi becomes more accessible when users no longer need to navigate L2s and bridges. Liquidity improves as assets move seamlessly across marketplaces. Governance participation becomes more inclusive as users can vote from any network.
This unified experience positions Ethereum to continue to lead as the pioneer Web3 protocol. While other chains optimize for speed within a single network, Ethereum is building a unified ecosystem that combines the benefits of specialised L2s with the simplicity of a single chain.
The Time to Act is Now
ERC-7683 has gained broad support from over 45 teams, including Arbitrum, Base, Optimism, Polygon, and zkSync, reflecting the Ethereum community’s readiness to address fragmentation. Unified standards, shared infrastructure, and collaboration are crucial to overcoming these challenges.
With fast L2s, account abstraction, and intent-based bridging already in place, ERC-7683 integrates these innovations into a cohesive standard, setting the stage for Ethereum’s next chapter.
Fragmentation cannot be allowed to hinder Ethereum’s progress. Adopting ERC-7683 is essential for building a unified, accessible ecosystem. L2s, developers, and the broader community are encouraged to embrace this standard to unlock Ethereum’s full potential as a scalable and seamless system by 2025.
Let’s make it happen.
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Crypto Valley Exchange Bets ‘Smart Clearing’ Is DeFi Derivatives’ Missing Link

The complex pipes that keep derivatives trades moving are about to get a major efficiency boost in DeFi, according to Crypto Valley Exchange.
Crypto Valley Exchange’s «smart clearing» protocol will lower the capital requirements for derivatives traders by setting collateral levels in light of the traded assets’ correlations in price. In doing so, it could make DeFi more competitive with the mainstream financial markets crypto trying to replace, according to CEO James Davies.
The service is a new take on an age-old problem in DeFi: how to sufficiently mitigate counterparty risk in a trustless environment.
Traditional financial markets like CME and NYMEX rely on clearinghouses to be a trusted counterparty for every buyer and seller. They demand some collateral, but hardly 100%. DeFi markets, meanwhile, definitely lack a trusted middleman, and so can’t afford to require anything less than full collateral.
This system works, but hardly well. More collateral requirements means traders have less capital to deploy elsewhere. Davies claims this severely limits the market’s growth.
«This is the one place where all of crypto is much more conservative than TradFi,» Davies said. «We’re really, really undersized in this space, and that’s because clearing is needed to create this efficiency.»
He pointed to the seeming lunacy of requiring full margin for trades involving highly correlated assets, like forms of oil.
«If I was to go to, say [commodities exchange] NYMEX as an oil company and want to buy oil and sell jet fuel, and you asked me to put down full margin on both parts, I’d laugh at you, because those things are 90% correlated,» Davies said.
He believes the same logic should apply in DeFi. «Ethereum isn’t going to 10,000 on the day Solana goes to zero,» he said. Because of the correlation, a trader betting that ETH will rise relative to SOL shouldn’t need to post full collateral.
In his telling, clearing is the missing piece in DeFi’s effort to gobble up traditional finance. If protocols gain an ability to better manage the risk, and also do so transparently, on a blockchain, so that everyone can see what’s happening and how, then they’ll become competitive with the financial rails they’re trying to replace.
«You can’t just build a perps DeFi platform for, say, treasuries or commodities, go up against NYMEX or go up against CME, and expect to win when you have to lock up so much more collateral than you would do to trade on those platforms.» Davies said.
If crypto’s real-world asset (RWA) subsector delivers on its promise of bringing tokenized versions of everything on-chain then, according to Davies, DeFi will need a solution to the clearing efficiency problem such as this. Institutional investors won’t put up with requirements for triple the collateral capital they’re used to – especially on correlated trades, he said.
The first user is Crypto Valley Exchange itself. Already, the Arbitrum-based futures and options DEX is running dated futures orders through its smart clearing. More capabilities are coming later this year to support commodities markets beyond crypto, and Davies hopes for other protocols to plug into smart clearing, too.
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Onyxcoin Rises by 150% as Volume Explodes, Binance Announces Listing

Onyxcoin (XCN), the native token of its namesake’s modular blockchain, experienced a major boost over the past 48 hours, bucking the bearish market sentiment with a 150% rise.
Daily trading volume averaged around $25 million earlier this week until the token started to rip through levels of resistance. That figure has now ballooned to $600 million, the majority of which took place on Coinbase.
The surge in volume and apparent lack of visible catalyst prompted Binance to list XCN futures on its exchange on Friday.
Unlike many other Binance listing announcements, the listing did not spur an additional increase in token price, which could indicate that some investors opted to «sell the news,» creating a type of equilibrium between new buyers and old sellers.
As the native token of Onyxchain, XCN can be used for payments within the Onyx ecosystem, this includes node deployment. It can also be used to participate in governance proposals.
The token has been trading for three years but performance was largely muted in 2023 and 2024. It then rose rapidly in January, going from $0.0025 to $0.03 in 11 days, prompting Tron founder Justin Sun to question the legitimacy of price action.
«XCN chain is currently engaging in significant market manipulation. They are using high leverage and contract that could cause serious harm to many exchange users. I recommend that major exchanges pay close attention to this risk,» Sun wrote in a tweet on Jan. 24 that he’s since deleted.
UPDATE April 11, 15:46 UTC: Adds context about XCN token and now deleted tweet from Justin Sun.
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BlackRock Bitcoin and Ether ETF Inflows Declined 83% in Q1 to $3B

In no surprise given the lame crypto price action in the first quarter of 2025, BlackRock (BLK) posted a sizable slump in net inflows into its spot bitcoin (BTC) and ether (ETH) ETFs.
In all, investors put $3 billion into BlackRock’s digital asset-focused ETFs in the first three months of the year, according to the company’s first quarter earning report. That’s an 83% drop from what was a big inflow number in the fourth quarter as prices and sentiment shot higher alongside the Trump election victory.
Taken alone, the first quarter number still signals strong demand for crypto-linked funds, even as prices deteriorated.
That $3 billion represents 2.8% of the total inflows into BlackRock’s mammoth iShares ETFs in the first quarter, which also include active, core equity, and strategic funds, among smaller categories. BlackRock at quarter’s end managed roughly $50.3 billion in digital assets, or about 0.5% of its total assets of more than $10 trillion.
Digital asset ETFs accounted for $34 million in base fees, or less than 1% of the company’s long-term revenue.
The decline in bitcoin and ether ETF inflows last quarter came alongside a 70% quarterly fall in iShares’ overall inflows to $84 billion from $281 million as global markets attempted to navigate the changing macroeconomic environment under President Trump.
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