Introduction

In the following report, we express our view that Across ($ACX), which is a bridging protocol with a $40M market capitalization approaching recent all-time highs, 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.

Firstly, the Dencun Upgrade, scheduled for 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, 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.