![]() This is reflected in the distribution of capital transferred via bridges. Tokens are traded against stablecoins much more often than they are against other cryptocurrencies. Stablecoins are the backbone of the crypto ecosystem. Methodology: Stablecoin creation/redemption hot wallet analysis on Binance Smart Chain via Dune Analytics, on Solana via TheGraph Looking at the graph below, we can see that the centralized exchange volume outweighs Wormhole’s volume. Another solution is via Wormhole, which is a multi-route bridge that produces wormhole wrapped tokens. Users deposit their ERC20 or BEP20 tokens on centralized exchanges and then withdraw the SPL equivalent into the Solana ecosystem. On Solana, the most popular bridging occurs via centralized exchanges. Per the graph below, we estimate that there is around ~$500 million in daily bridge volume. Methodology: Bridge contract wallet Ethereum address analysis via Dune Analyticsīinance Smart Chain bridge started out as an ecosystem sponsored single-route bridge that connects Binance Smart Chain with other ecosystems but has since evolved into a multi-route bridge. Amongst the top five most popular Defi bridges - Fantom, Arbitrum, Polygon, Optimism, and Avalanche - there is, on average, a slow stream of capital moving out of Ethereum along with days of massive outflows, most likely due to a new protocol or yield farming opportunity at the destination chain. The above graph shows TVL across the top bridges over the last 6 monthsĬomparing capital inflow and outflow for the past few months provides interesting insights about the ecosystem. The downside of this design is that they often lack the support and usability of the wrapped token at the destination chain. The common design for multi-route bridges includes a wrapped token at the destination chain. Recently, multi-route bridges have become more popular. ![]() ![]() Alternatively, in a future where other chains are likely to displace Ethereum’s current dominance, it’s likely that users will not want to route through Ethereum. However, users are required to pay high Ethereum gas fees when using bridges with the Ethereum network as the starting point. Examples include Polygon’s Plasma Bridge and Avalanche Bridge. These bridges are often quick to develop because they don’t need to consider scalability and interoperability with other blockchains, and the design choice of these bridges makes sense given that Ethereum has the highest TVL. They are often developed and maintained by the destination chain’s protocol and most of them share Ethereum as the common starting point. Single-route bridges refer to bridges that connect two blockchains. The development of these individual ecosystems showcased their own unique strengths - faster throughput, enhanced security, cheaper transactions, and more - while also demonstrating the need for cohesion and interoperability in the great Defi ecosystem. Most recently, we’ve seen the rise of L1s such as Solana and Avalanche. After the emergence of Binance Smart Chain in early 2021, attention shifted to various L2s. This article was originally posted on FX Empire More From FXEMPIRE:Įthereum Network Growing At a Pace of 1.Defi started in 2020 and began adapting to a more multi-chain world after months of being Ethereum-centric. ![]() ![]() This price movement has likely been swayed by the general market sentiments, which have added 1.5% to the overall market cap of the industry. The word combines Metadata and DeFi and simplifies the BNB Chain community goal to have the infrastructure for projects on one network.Īs of press time, the BNB is currently the fourth largest crypto asset by market cap, and its value has risen by 0.5% within the last 24 hours to $432. Binance also coined the MetaFi concept to describe what the BNB Chain ecosystem could provide. ![]()
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