Top 12 Bridges with Highest Liquidity in Q1 2023
The Total Value of Locked Assets in the DeFi world increased by 40.2% in Q1 2023 leading up to the Arbitrum airdrop. This increase was likely caused by the price appreciation of locked assets, as BTC surged by 70% since January 2023.
Blockchain bridges are protocols or software layers that connect disparate blockchain networks, enabling communication and interoperability. They are used to facilitate cross-chain transactions, such as DeFi and supply chain management. There are three types of blockchain bridges: pegged, federated, and hybrid.
According to Coingecko, here are the top 12 bridges with the highest number value of liquidity as of 1 April 2023:
WBTC stands for Wrapped Bitcoin, a type of cryptocurrency that is pegged to the value of Bitcoin. It is an ERC-20 token that is backed by real Bitcoin, which is held in reserve by a custodian. It is sometimes referred to as a bitcoin bridge. To obtain WBTC, users send their Bitcoin to a custodian, who mints the equivalent amount of WBTC tokens and sends them.
The custodian is responsible for holding and securing the Bitcoin reserves that back the WBTC tokens and must undergo regular audits to ensure the reserves are properly maintained. WBTC is a way to bridge the Bitcoin and Ethereum ecosystems, enabling Bitcoin holders to access the benefits of the Ethereum network without having to sell their Bitcoin holdings. In Q1 2023, it held the highest number of liquidity at $4.3 billion which was higher than its $3.0 billion mark at the close of 2022.
Just Cryptos creates a link between premium cryptocurrencies on the TRON network and other public chains and gives token value to TRON to fuel the JUST ecosystem, and all assets are stored and can be swapped on Poloniex. The entire Just ecosystem is made up of USDJ Stablecoin, the JustLend DAO lending platform, and Just Cryptos (JST).
JST is the sole token for dApp governance and protocols, and it may be obtained by mining, trading, and campaign participation. Through decentralized voting, JST holders can jointly govern JUST. The Just Cryptos bridge had the second highest liquidity in Q1 2023 at $3.4 billion and $2.0 billion in Q4 2022.
Multichain, formerly known as Anyswap, is a protocol created to meet the obvious requirement for distinct and unique blockchains to connect with one another. Multichain is an interoperable layer that allows almost all blockchains to inter-operate, including Ethereum, Parachains, Bitcoin, and COSMOS chains.
It supports all ECDSA and EdDSA encryption types, making it almost universally applicable as an interoperable layer. Multichain offers 4 types of services: Bridge, Router, Crosschain Contract Calls, and Crosschain NFT Bridges. Multichain had $1.5 billion in liquidity at the end of Q1 2023 making it the third most-used bridge in the same period. It had $1.3 billion in the previous quarter.
Stargate Bridge is a cross-chain bridge that enables the transfer of digital assets and data between different blockchain networks. It is built on the Cosmos Network, a decentralized ecosystem that aims to connect different blockchains and enable interoperability. It offers high transaction throughput and low latency, allowing it to process large volumes of transactions quickly and efficiently.
Its modular architecture enables developers to build custom cross-chain solutions that meet their specific needs. STG, the Stargate token, has various uses because it can be staked and farmed. From $385 million in liquidity in the last quarter of 2022 to $370 million in Q1 2023, Stargate had the fourth-largest liquidity for all bridges in the DeFi space.
Poly Network is a decentralized finance platform that acts as a link between several blockchain networks, allowing users to move digital assets across them. The major tool used to achieve this interoperability is the Poly Network Bridge, which creates smart contracts on multiple blockchains that permit the movement of digital assets across them.
It supports many blockchain networks and intends to increase the liquidity, flexibility, and accessibility of decentralized financial users. Poly Network had $289 million in Q4 2022 but grew to $338 million in Q1 2023.
Portal Network Bridge is a cross-chain bridge that enables users to transfer tokens including NFTs and assets between different blockchain networks in a secure and decentralized manner. It is built on the Portal Network, a decentralized platform for building cross-chain applications.
It supports a wide range of blockchain networks, including Ethereum, Binance Smart Chain, Polygon, and more. It is built using a distributed network of nodes that validate transactions and ensures the security and integrity of user funds.
The Portal Bridge had the sixth highest value of liquidity in Q1 2023 at $282 million, which is also higher than what it had at the end of 2022, at $242 million.
hBTC bridge is a decentralized bridge built by Huobi Group that enables users to move Bitcoin (BTC) from the Bitcoin blockchain to the Huobi Eco Chain (HECO) and back. It allows users to lock up BTC on the Bitcoin blockchain and mint hBTC on the HECO blockchain at a 1:1 ratio.
When a user wants to move hBTC back to the Bitcoin blockchain, they can initiate the burn process, and the corresponding BTC is released to the user’s Bitcoin address. Overall, the hBTC bridge enables Bitcoin holders to access the benefits of the HECO ecosystem without having to sell their Bitcoin holdings.
The bridge with locked-up liquidity of $256 million was placed at the seventh position of the bridges with the highest liquidity in Q1 2023.
Synapse Bridge is a decentralized cross-chain bridge that enables users to transfer assets between different blockchain networks in a secure and trustless manner. It is built on top of the Synapse Network, a decentralized platform for building interoperable blockchain applications.
It has a fast transaction confirmation time and is designed to be highly secure and trustless, with a decentralized architecture resistant to single points of failure and potential attacks. It is a promising cross-chain solution that offers fast, secure, and cost-effective asset exchanges between different blockchain networks.
Synapse, holding $189 million in Q1 2023, came eighth on the list of top bridges with the highest value locked in the same period.
Orbit Bridge is a decentralized cross-chain bridge that enables users to transfer assets between different blockchain networks in a secure and trustless manner. It is built on top of the Binance Smart Chain (BSC) and uses a combination of smart contracts and a decentralized network of validators to facilitate cross-chain transactions.
It has a fast transaction confirmation time and is designed to be highly secure and trustless. Overall, Orbit Bridge is a promising cross-chain solution that offers fast, secure, and cost-effective asset exchanges between different blockchain networks.
Orbit at the end of Q1 2023 had liquidity of $186 million, making it to the ninth position on this list. In Q4 2022, it was $137 million.
Chainport is a decentralized cross-chain bridge that enables users to transfer assets between different blockchain networks in a secure and trustless manner. It is built on top of the Cosmos Network, which is a decentralized platform for building interoperable blockchain applications.
It is designed to be highly secure and trustless, with a decentralized architecture resistant to single points of failure and potential attacks. It is a useful tool for both individual users and businesses looking to expand their reach across multiple blockchain networks. Chainport is in the tenth position with a liquidity of $176 million, which is higher than the $122 million it had in Q4 2022.
Celer cBridge is a decentralized cross-chain bridge that allows users to exchange assets across different blockchain networks in a fast, secure, and cost-effective manner. It is built on top of the Celer Network, which is a layer-2 scaling solution for blockchain networks.
It has a fast transaction confirmation time and is designed to be highly secure and trustless. It is a promising cross-chain solution that offers fast, secure, and cost-effective asset exchanges between different blockchain networks. At the eleventh position in the list, Celer cBridge held $141 million at the end of Q1 2023, a higher figure than what it had in Q4 2022, $94 million.
Thorchain is a decentralized cross-chain liquidity protocol that enables users to easily exchange assets between different blockchain networks without relying on a centralized exchange. It is built on top of the Cosmos network, which allows it to take advantage of its interoperability features and communicate with other blockchain networks.
Thorchain has the potential to greatly enhance the liquidity and usability of decentralized finance (DeFi) by providing a seamless and decentralized way to exchange assets across different blockchains. It had liquidity of $119 million in Q1 2023 to make it to the top twelve bridges in Q1 2023 with the highest locked value in millions of dollars.
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