Axelar on-chain data: 64 chains, GMP dominance and cross-chain volume
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Data thread on Axelar, an interoperability L1 with a 75+ validator set using threshold signatures. General message passing dominates activity, with BNB and Sei leading by dollar value on fewer transactions, which suggests whale activity.
Key claims
Axelar supports 64 chains and 668 contracts use its GMP
Validator set of 75+ verifies messages with TSS
Polygon PoS is the most frequent source and target chain by count
I love data. 馃搳
Especially in the interoperability game. 馃寪
Data is not only key to identify the winning protocols, it also offers deep insight into hidden cross-chain dynamics.
A data-driven 馃У full of pure alpha t.co/56NLcJzSvX
1/ 1/ Amid the modularization of the entire Web3 tech stack, we're increasingly seeing new application- and vertical-specific L1s and L2s emerge.
This growth comes with a fragmentation of liquidity and users across ecosystems, which in turn adversely affects the UX.
2/ 2/ To overcome this friction, scalable and secure interoperability solutions are key.
However, while the market has seen many approaches to make that possible, many interoperability solutions are still highly centralized and pose significant risks to users and ecosystems.
3/ 3/ One promising protocol is @axelarnetwork.
Axelar is a generic messaging protocol (GMP) that enables interoperability through a purpose-built L1 with a dynamic validator set (75+) that verifies messages through a Threshold-Signature-Scheme (TSS).
x.com/axelarnetwork/status/1744733308452589818
4/ 4/ The validator set of the @axelarnetwork is responsible for verifying that whatever event needs to take place on the source chain, happens.
Having this verification done by a decentralized validator set is more secure than the also common multi-sig approach.
5/ 5/ But let's dive into the data of @axelarnetwork!
馃搳 All the data is from axelarscan(.)io
6/ 6/ First of all, let's set the context.
@axelarnetwork is one of the most versatile interop solutions.
It supports a mind-blowing 64 chains, which is far more than the main competitors, and across which 668 contracts leverage Axelar's GMP.
7/ 7/ Axelar is primarily focused on the EVM and @Cosmos ecosystems.
That's where the majority of transactions happen, with @0xPolygon PoS being the most frequently used source chain as well as target chain.
Other popular chains are @BNBchain, @osmosis or @arbitrum.
8/ 8/ If we look at the $$$ volume instead, we see a different picture though.
@BNBCHAIN and @SeiNetwork are clearly dominant, followed by Ethereum and @osmosis.
9/ 9/ What does this imply?
Well, it means that @BNBCHAIN and @SeiNetwork achieve a higher $$$ value in bridged assets on a lower transaction count.
Consequently transactions to & from these networks tend to have a higher average value, which suggests increased whale activity.
10/ 10/ But let's look beyond that.
The overall transaction count on @axelarnetwork has been growing rapidly and consistently in recent months.
What is important to point out here though is the dominance of GMP transactions.
11/ 11/ What that means?
@axelarnetwork is much more than a bridge.
Axelar is interoperability infrastructure that allows devs to build natively cross-chain applications.
The majority of the transaction volume originates from these apps.
12/ 12/ This also holds true if we talk about the $$$ value of the volume rather than the transaction count.
We also see the impact that airdrops can have on these stats (see red part of the graph).
13/ The increased demand for interoperability and cross-chain connectivity I was mentioning initially is also evidenced by the healthy user growth that we see with @axelarnetwork based on monthly active users.
14/ This translates into significant fee revenue that is generated.
Enabling interoperability is a powerful business model anon.
15/ Wondering about what specifically are the most popular routes and contracts?
@squidrouter definitely a strong ecosystem driver.
Have a look here! 馃憞
16/ The overall interoperability landscape is fragmented.
To build on our data analysis we need to expand it.
We need to look at cross-chain flows more broadly and identify where the activity and the value goes in the big picture.
17/ Stay tuned, soon we will look into some data of @wormhole.
Next week, we will compare the two interoperability giants.
You ready for the interop wars anon? 馃憖
That's a wrap! I hope you've found this thread helpful! 馃
Make sure to follow me @zerokn0wledge_ and @ApertureFinance to stay ahead of the curve on the interop wars! 馃寪
Like/Repost of the below post is also highly appreciated! 馃檹馃憞
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