Niche Analytics: Cross-chain Tokens
Agenda
As DeFi market keeps growing, it requires a reliable cross-chain platform for convenient transfer of different crypto. That’s provoking the development of cross-chain industry. Some tokens saw a substantial boost in price as the crypto ecosystem focused on integrating cross-chain interoperability as a new fundamental component in DeFi.
Sector Overview
The cross-chain sector is a significant part of the crypto infrastructure. It is a technology that enhances the interconnection between blockchain networks by allowing the exchange of information and value. In doing so, it breaks the siloed nature of blockchains to create an intertwined distributed ecosystem.
Market Cap: <$10bln
Tokens of cross-chain projects are generally used in transfers between different blockchains as a fee for the transfer. Also, it is usual to have bridge technologies in larger projects, for example, Binance has one of the not many trust-based bridges. But not all bridges are tokenized.
Blockchain bridges can do a lot of cool stuff like converting smart contracts and sending data, but the most common utility is token transfer. For example, Bitcoin and Ethereum are the two largest cryptocurrency networks and have vastly different rules and protocols. Through a blockchain bridge, bitcoin users can transfer their coins to Ethereum and do with them what they otherwise could not on the bitcoin blockchain. That can include purchasing various Ethereum tokens or making low-fee payments.
Technology itself build on a system of smart contracts between blockchains, which is designed to lock your asset and then transfer the same amount of another crypto to you. This fact helps to avoid blockchians’ gas fees, which makes bridges attractive for the community. That’s why cross-chain bridges have another key metric — Total Value Locked(TVL). That shows the amount of total gross assets in bridge’s smart contracts.
Best Performance
Wanchain
ROI(ATH):~14k%; ATH:~9.8$; Market Cap: $97,235,820; TVL:$432.59M
Synapse
ROI:~10%; ATH:~4,5$; Market Cap: $374,909,754; TVL:$811.81M
Anyswap(Multichain)
ROI:~130k%; ATH:~34,5$; Market Cap: $242,787,798;TVL:$6.65B
Categories
There are two main types of cross-chain projects. Trust-based and trustless. The biggest trust-based bridge is part of the Binance Ecosystem. Trust-based bridges are fast and an economical option when you want to transfer a large amount of crypto, but the pool of reliable services is rather small. Venturing into the territory of less-known brands can increase risks, which makes it unattractive to smaller traders. Also, trustless projects are more numerous and more interesting for investors.
Token example:Multichain(Anyswap)
This platform is popular for having features other than transferring crypto. Once connected to a wallet, you can see all of your balances across different types of coins. You can also freely transfer balances from one place to another. However, there are certain blockchains where, if you want to transfer from, you can only go to a specific destination.
MULTI is the governance token used to allow MULTI token holders to vote and participate in the governance of the Community and Ecosystem.
Evolved from Anyswap, a decentralized cross-chain swap protocol with DEX trading and liquidity mining rewards, Multichain is re-positioned as an infrastructure developed for arbitrary cross-chain interactions, an ultimate router for Web 3. Here we will explain to you the MULTI Tokenomics.
The total supply of MULTI will be 100 million according to the fixed exchange ratio with ANY (ANY : MULTI=1:1) as the total supply of ANY is 100 million. Currently, ANY circulating supply is 18,639,320, accounting for 18.64% of the total. Once the swap is completed, MULTI circulation will be 18,639,320 while the uncirculated accounts for 81.36%.
The uncirculated MULTI tokens are locked in the smart contracts, and its specific use is determined by the DAO. Meanwhile, ANY Tokenomics for repurchase and destruction will also be upgraded to the veMULTI model.
ICO Token Price: 1 ANY = 0.02 FSN(around 0.01$)
Summary
The cross-chain sector is a significant part of the crypto infrastructure, but demand for it just started growing. So, there are not many tokenized projects yet. This niche will see its growth in the near future because of DeFi enlargement. Bridges might be implemented in many DeFi projects as part of its user-friendly infrastructure.
There are projects that have implemented cross-chain technologies in 2021:
