Cryptocurrency has advanced in transaction throughput but faces a critical challenge: liquidity fragmentation, where capital and users are dispersed across numerous blockchains. Vitalik Buterin noted that while scaling has improved, it has created coordination issues as liquidity becomes isolated in silos within each network. This fragmentation complicates user experiences, leading to higher transaction costs and reduced capital mobility. Although various solutions like bridges and crosschain aggregators exist, they often fail to unify liquidity effectively. The integration of liquidity at the base layer is proposed as a solution, embedding interoperability directly into blockchain architecture. This would allow new chains immediate access to a shared liquidity pool, simplifying user interactions with decentralized applications and providing a seamless experience regardless of the underlying blockchain. The article concludes that direct integration of interoperability within blockchain infrastructure is essential to ensure capital remains connected, ultimately facilitating smoother value movement across the entire ecosystem.

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