Research Summary
The article provides a comparative analysis of multi-chain bridges in the period from January to May 2023. The article highlights that Ethereum makes up 58% of DeFi TVL, with a total TVL in DeFi of $47.6B. Bridging solutions have facilitated an average daily volume of $225M, representing less than 1% of Ethereumโs total TVL. Stargate is the most used bridge, facilitating 42.9% of total bridged volume, with an average of $42.4M in bridged volume. It also contributes to 82.5% of transactions and 64.3% of unique users, averaging 68k transactions and 17k users daily. Multichain has facilitated an average of $5.3k in transaction value and generated a total of $3.5M in fees. Stargate has collected an average of 0.0005$ per $1 transferred value, amounting to a 0.05% fee on every transaction, which is the lowest among all bridges.
Actionable Insights
- Monitor Regulatory Developments: As the cross-chain future comes into fruition, users will be drawn to bridges that support the greatest number of assets and chains while charging the lowest fees. This suggests a need to monitor developments in the regulatory landscape that could impact these bridges.
- Assess Investor Behavior: Stargate’s popularity could be due to users gaining exposure for a potential LayerZero airdrop. This indicates a need to assess investor behavior and the impact of such incentives on the popularity of different bridges.
- Stay Informed on Exchange Activity: As DeFi evolves, bridging will become increasingly important and will be vital in shaping the multi-chain future. This suggests a need to stay informed on exchange activity and the role of bridging in the DeFi space.
