Altcoin Roundup: Cross-chain bridge tokens moon as crypto shifts toward interoperability

Interoperability will be a key theme for the cryptocurrency market in 2022, as many projects from the ecosystem announce integrations that make their networks Ethereum Virtual Machine (EVM), compatible.

This has been a long-term goal of the ecosystem, as it is a step towards an interconnected network protocol. However, it has also created a decentralized finance market (DeFi), for multi-chain bridges.

These are the three most popular cross-chain bridges used by the cryptocurrency community to transfer assets across blockchain networks.

Multichain

Multichain (MULTI), previously known as Anyswap is a cross-chain routing protocol that aims at becoming the standard router in the new Web3 ecosystem.

Multichain, according to data from Defi Lama, is the highest-ranked cross-chain Swap protocol in terms of total value locked with $8.95 Billion currently locked on the platform.

Multichain total value locked. Source: Defi Llama

Multichain’s high TVL is due to the many blockchain networks that it supports. The network currently supports access to 30 different chains.

Multichain supports blockchain protocols Source: Multichain

Multichain data shows that the protocol has processed $53.15 billion in volume since its launch, $19.08 billion of which was transacted within the last 30 days. The Multichain protocol currently has 485,399 users, which amounts to almost 2.256 million transactions.

Multichain network statistics. Source: Multichain

Multichain users who deposit tokens to one of its pools receive a sare from the transaction fees generated.

The native MULTI token of the protocol is used to vote in the governance of Multichain ecosystem. There are currently 18.64 million tokens available, out of a total of 100 million.

Synapse

Synapse (SYN), is a “crosschain layer protocol” which was created to allow users to interoperate between different blockchain networks.

Data from Defi Lama shows that Synapse reached an all-time high of $1.16 trillion in total value before experiencing a wave outflows that brought down the TVL to 740.43 millions.

Synapse total value Source: Defi Llama

According to data from Synapse’s dashboard, 12 chains are currently supported by the Synapse protocol. Their combined bridged volume is $5.33 billion.

Synapse total bridged volume for each network. Synapse

Synapse has recorded a large portion of the total volume since 2022, when the protocol saw an all-time high bridge volume at $157.8million on January 23.

Synapse bridge volume. Synapse Analytics

There are many uses for the native SYN token of the protocol within the ecosystem. It can be used by token holders to vote in community governance via SynapseDAO. Liquidity providers (LPs), who receive a percentage yield in SYN for deposits, and as a subsidy for network validators to purchase gas to ensure transactions across the network are secured, also get it.

LPs also get a portion of the Synapse platform’s protocol fees for each transaction.

Related: Web3 innovations replace middlemen with middleware protocols

Celer cBridge

Celer cBridge is another popular cross-chain bridge. This multi-chain network allows for instant value transfers between 19 networks at low cost.

The cBridge subsector of larger Celer (CELR), ecosystem uses the CELR token to operate on the protocol as well as as the reward token for liquidity providers.

A percentage of transaction fees generated by those who use liquidity pools to bridge funds across chain are paid out to LPs. These fees are added to the pools and compound the CELR rewards.

Data from cBridge analytics shows that the current value of the bridge contract (pool-based) and token vault contract (canonical token bridge) is $240.92 millions.

Statistics on cBridge use. Source: cBridge

Since its inception, the protocol has been used by 89,897 different addresses to conduct $2.842 billion worth of transactions.

Similar to Synapse’s transfer trend, the transaction volume on cBridge increased in 2022. A record $71.12million was transacted on Jan. 22.

Daily transaction volume on the cBridge Source: cBridge analytics

cBridge supports some of the most popular protocols, including Ethereum, Binance Smart Blockchain, Avalanche and Polygon.

You would like to learn more about investing and trading in the crypto markets?

Celer (CELR) gains 400% after traders embrace its multi-chain ‘cBridge 2.0’ solutionSynapse Bridge prevents $8M hackMultichain asks users to revoke approvals amid ‘critical vulnerability’Vitalik Buterin gives thumbs down to cross-chain applicationsMultichain hacker returns 322 ETH, keeps hefty finders feecom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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