The number of cross-chain bridges: the total locked position exceeded 13.1 billion US dollars in September, the total number of independent addresses exceeded 120,000

This article is from PANews

If you look at the development of DeFi, you can see a clearer path. Since the second half of last year, DeFi has been the first to explode on Ethereum under the incentive of liquid mining. However, with the increase in interactive demand, the high fees of Ethereum have evolved into an important factor restricting ecological development, which objectively promotes the arrival of the DeFi multi-chain era. Since the second quarter of this year, many projects have begun to deploy protocols on Layer 2 and other public chains. However, the DeFi ecosystem of each chain under the multi-chain structure is still relatively independent, and multi-chain interoperability has become an inevitable demand for adapting to development. In this context, the cross-chain bridge has become a new outlet that conforms to the DeFi trend and has attracted market attention.

What is the status quo of the development of cross-chain bridges? To this end, PAData analyzed the on-chain data of 14 major cross-chain bridges , including Arbitrum Bridges, Avalanche Bridge, and Solana Wormhole, and found that:

1. At present, the main cross-chain bridges on the market are mostly two-layer extended cross-chain bridges, and they are mainly built on Ethereum. In addition, there are some chain-specific cross-chain bridges. These cross-chain bridges are also mainly aimed at achieving interconnection with Ethereum, which may help to drain the DeFi ecology of the original chain.

2. The current lock-up amount of the 14 cross-chain bridges has reached approximately USD 13.18 billion, which is currently about 6.26% of the total lock-up amount of DeFi. However, the overall pattern is significantly differentiated. Among them, Polygon Bridges, Fantom Anyswap Bridge, Avalanche Bridge, and Arbitrum Bridges all have locked positions exceeding US$1.5 billion. In addition, most of the current locked positions of other cross-chain bridges are less than 1 One hundred million U.S. dollars.

3. The recent development of cross-chain bridges has been very fast. In the last 30 days, the lock-up amount has increased by more than 35%, of which 8 have exceeded 100%. The highest increase in Arbitrum Bridges has reached 1370.32%.

4. At present, the scale of cross-chain bridge transactions is still small. The average daily transaction volume of the eight cross-chain bridges monitored in the last three months is approximately US$22.4 million, with a median of only US$6.08 million. Moreover, the higher the average daily transaction volume of cross-chain bridges, the greater the volatility of their daily transaction volume, which means that the average daily transaction volume of these cross-chain bridges may be affected by a single event and be overestimated.

5. The number of independent addresses of 13 cross-chain bridges in September has soared to 127,600, an increase of over 103% from the previous month. The total number of independent addresses in the first week of October has reached 34,600. It is expected that the user scale for the whole month of October will increase steadily from September.

6. The number of independent addresses of most cross-chain bridges in the last 3 months has shown a continuous growth trend. Among them, the independent addresses of Arbitrum Bridges, Optimism Bridges and Near Rainbow Bridge have the largest month-on-month increase in September, reaching 3452.87% and 538.12 respectively. % And 181.75%.

7. Under the condition that the lock-up amount of the cross-chain bridge has increased by 35% in the last 30 days, the lock-up amount of the original network of each cross-chain bridge has increased or decreased, and the cross-chain bridge has not brought a consistent positive impact. Among them, the lock-up amount of Arbitrum and Moonriver and the lock-up amount of the cross-chain bridge have both increased during the same period, and the total amount of ecological lock-up has decreased under the background of the increase in the lock-up amount of the cross-chain bridge, for example, Polygon and BSC.

Layer2 type and chain-specific cross-chain bridges account for the majority

What is a cross-chain bridge? In short, it is a tool that enables various assets to circulate freely on different blockchains. Referring to the general classification method, if according to the type of cross-chain bridge construction, the cross-chain bridges on the market can be roughly divided into two-layer extended type (Layer2-specific), chain-specific type (Chain-specific), application type ( Application-specific) and Generalized.

At present, there are many two-layer extended chain bridges. Of the 14 cross-chain bridges in the scope of this observation, 6 are all Layer 2 bridges. Among them, most of them are the Layer 2 network of Ethereum, such as Arbitrum Bridges, Optimism Bridges, Polygon Bridges, etc., and there are also Layer 2 networks of Bitcoin, such as RSK Token Bridges.

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In addition, there are many chain-specific cross-chain bridges. There are 4 in the scope of this observation, including Avalanche Bridge, Harmony Bridges, Near Rainbow Bridge and Solana Wormhole. The chain-specific cross-chain bridge can realize the interoperability between two independent Layer1 blockchains, usually one blockchain is constructed for another specific blockchain.

There are 4 application-specific cross-chain bridges in the scope of this observation, but they can actually be classified as two, namely, Anaswap Bridge and Optics Bridge. Application-based cross-chain bridges can provide interoperability for more than two blockchains, but users can only access all other blockchains connected by the cross-chain bridge in the application. The official website of Anaswap claims that it currently supports 20 chains, while Optics has just been online for less than a month. It is currently only deployed on Celo, Ethereum and Ploygon, but according to the official introduction, it will also be deployed on Polkadot, Kadena, Solana, Near and Cosmos in the future. .

The general-purpose cross-chain bridge is similar to the application-type cross-chain bridge, that is, it can realize the interoperability of two or more blockchains, but the difference is that the general-purpose cross-chain bridge does not need to use a specific application as an interface, but It is integrated in the form of modules, and the typical representative is the IBC protocol of Cosmos. Although the general-purpose cross-chain bridge is not included in the scope of this observation, its sub-type—Asset-specific cross-chain bridge has long been widely used, and its main mechanism is to encapsulate assets so that it can be used in Flow in a specific network, such as WETH, W BTC, etc.

The type of cross-chain bridge has determined the network it is connected to to a certain extent. For example, the two-layer extended cross-chain bridge is mainly constructed to solve the efficiency problem of Layer 1 network, so it is generally only used for interaction with Layer 1. For example, the Layer 2 cross-chain bridge of Ethereum is usually interoperable with Ethereum, but the exception is RSK Token Bridge, which is also interoperable with Ethereum as a side chain of Bitcoin.

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In the case of the first development of the Ethereum DeFi ecosystem, most of the other public chains, especially the emerging public chains, are building chain-specific cross-chain bridges with the goal of achieving interconnection with Ethereum, which will help DeFi for themselves. Ecological drainage, such as Avalache, Near, Solana, etc., currently only Harmony Bridges has achieved multi-chain and cross-chain across Ethereum and BSC. The application-oriented cross-chain bridges are usually multi-chain interoperability. Anyswap Bridge and Optics Bridge basically cover the main public chains of the current DeFi ecological prosperity, such as Ethereum, BSC, Polygon, etc., with a wide range of network effects.

The total lock-up amount of the cross-chain bridge exceeds 13.1 billion U.S. dollars, and the average daily number of independent addresses in October is about 344

According to the monitoring of Dune Analytics, as of October 8, the total lock-up amount of 14 cross-chain bridges has reached approximately USD 13.18 billion, which is currently about 6.26% of the total lock-up amount of DeFi. Among them, Polygon Bridges has the highest total lock-up amount, which reached US$4.632 billion. Secondly, Fantom Anyswap Bridge, Avalanche Bridge and Arbitrum Bridges also have current lock-ups of more than US$1.5 billion, which are approximately US$3.134 billion, US$2.911 billion and US$1.636 billion, respectively, forming the “second echelon.” But in addition, most of the current lock-ups of other cross-chain bridges are less than US$100 million, and the overall pattern of differentiation is very obvious.

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However, it should be noted that although the current lock-up amount of most cross-chain bridges is not high, the recent development has been very fast. The total locked position of 14 cross-chain bridges has increased by 62.23% in the last 30 days. From the perspective of a single cross-chain bridge, with the exception of Optics Bridge’s online time of less than one month and excluding statistics, the smallest increase in the lock-up amount of the other 13 cross-chain bridges in the last 30 days is more than 35%, and the increase exceeds 100%. There are eight. Among them, Arbitrum Bridges has the largest increase in locked positions, which has increased by 1370.32% in the last 30 days. Fantom Anyswap Bridge and Moonriver Anyswap Bridge have also increased in locked positions, reaching 591.33% and 306.27% respectively in the last 30 days.

From the perspective of transaction volume, the average daily transaction volume of the 8 cross-chain bridges monitored (combined count of the two entrances of Arbitrum) in the last three months is about 22.4 million US dollars. But this is affected by the Avalache Bridge and Fantom Anyswap Bridge. The average daily transaction volume of the two in the last three months reached 120 million US dollars and 52.73 million US dollars, which is much higher than other cross-chain bridges. If you look at the median value that is more representative of the average level, the average daily transaction volume of the eight cross-chain bridges in the last three months is actually only about 6.08 million US dollars. It is also worth noting that the higher the average daily transaction volume of the cross-chain bridges, the larger the standard deviation of the daily transaction volume, that is, the stronger the volatility, which means that the high daily average transaction volume of these cross-chain bridges is likely It is overestimated due to the extremely high trading volume on certain days. For example, new funds will be attracted to enter through the cross-chain bridge during the initial mining of new projects. On the whole, the current cross-chain bridge transaction scale is still small.

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At present, the main transaction asset on the cross-chain bridge is ETH (including WETH). As of October 8, the total amount of ETH lockup on 14 cross-chain bridges reached 5.276 billion U.S. dollars, accounting for 39.91% of the total lockup volume. Followed by WBTC, the total amount of locked positions reached about 1.980 billion US dollars, accounting for about 14.97% of the total locked positions. The lock-up volume of the two mainstream trading assets has accounted for more than 50%.

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In addition, the main trading assets on the current cross-chain bridge also include a variety of stable currencies, such as USDT, USDC , DAI, etc., and their total locked positions exceed US$2.2 billion, US$1.1 billion and US$70 million, respectively. 17.25%, 9.03% and 5.74%. Another type of main transaction asset is the governance tokens of various DeFi applications, such as AAVE and SNX. The total locked positions reached 180 million U.S. dollars and 146 million U.S. dollars, accounting for approximately 1.37% and 1.10%, respectively. In addition, affected by the booming DeFi ecosystem on Polygon and the extensive demand for cross-chain oracles, the total amount of locked positions on the cross-chain bridge of MATIC and LINK is also relatively high.

From the perspective of user scale, the recent increase in the number of independent addresses across chain bridges has also been significant. The total number of independent addresses for the 13 cross-chain bridges in July was about 47,100, in August it was about 62,800, and in September it has soared to 127,600. The total number of independent addresses in the first week of October has reached 34,600. If estimated based on the current user scale, the number of independent addresses in October will be slightly higher than that in September, reaching approximately 148,200. If estimated by the same 103% increase in September, the number of independent addresses in October will be possible Break through 250,000.

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The number of independent addresses of most cross-chain bridges in the last three months has shown a continuous growth trend. Among them, Arbitrum Bridges, Optimism Bridges and Near Rainbow Bridge have the largest increase in independent addresses in September, reaching 3452.87%, 538.12% and 538.12% respectively. 181.75%, and the total number of independent addresses of Optimism Bridges in September is also the largest, reaching 55,000. In addition, the total number of independent addresses of Avalanche Bridges in September was second only to Optimism, reaching 31,500, and achieved a relatively large increase of 39.15% from the previous month, showing a good development momentum.

On the contrary, the independent addresses of Polygon Bridges, RSK Token Bridge and xDAI Bridges showed a downward trend in the last 3 months.

Arbitrum’s recent DeFi lock-up amount has surged, and the lock-up repetition rate of multiple cross-chain bridge basic networks has dropped

The construction of cross-chain bridges theoretically increases the liquidity of various assets. Then, with the rise of cross-chain bridges, has DeFi achieved scale expansion?

According to the DeFi lock-up amount and changes in the original network of the cross-chain bridge, it can be seen that when the lock-up amount of the cross-chain bridge has increased by a minimum of 35% in the last 30 days, the lock-up amount of each original network has increased or decreased, and the cross-chain bridge has merged. Did not bring a consistent positive impact.

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Among them, for example, Arbitrum and Moonriver’s DeFi lock-up amount has increased by more than 4000% in the last 30 days, and the current amount is 1.31 billion U.S. dollars and 210 million U.S. dollars respectively. Over the same period, the lock-up amount of cross-chain bridges has increased by 1370% and 306% respectively. The development of cross-chain bridges may have promoted the ecological prosperity of the original network. But Polygon and BSC are the opposite. In the last 30 days, the DeFi lock-up amount has dropped by 10.72% and 5.39%, and the current amounts are US$4.58 billion and US$17.38 billion, respectively. The lock-up amount of cross-chain bridges during the same period has increased by 93% and respectively. Around 42%, the development of the cross-chain bridge may not have brought too much change to the ecology of the original network, and there may even be the possibility of funds escape through the cross-chain bridge.

If we consider the repetition rate of locked assets, we can find that when the cross-chain bridge lockup amount and the ecological total lockup amount both increase, the effectiveness of the increase in the total lockup amount of the original network DeFi is not exactly the same. Among them, the repetition rate of Avalanche’s lock-up amount in the last 30 days has increased by 145.38%, and is currently about 22.33%, which means that the actual growth efficiency of its recent total lock-up amount may be lower than other public chains. In addition, Fantom, Optics, Optimism and xDAI, which have statistical data, have their lock-up repetition rates in the last 30 days. Fantom and xDAI have fallen by more than 20%, which means that their recent total lock-up amount has actually increased. higher efficiency.

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The repetition rate of locked assets is related to the combination of DeFi. The more combinations, the higher the repetition rate, and the lower the net lock efficiency of assets. Conversely, the lower the repetition rate, the higher the net lock efficiency of assets. , Only in this case, the increase in cross-chain bridge lock positions may mean that the funds actually introduced are more effective.

Analyst | Carol Editor | Tong

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