The original post: /r/cryptocurrency by /u/watch-nerd on 2024-12-27 12:47:23.
Lots of alt chains on the market and you may be wondering:
Am I making a long term investment in a chain that has usage and will continue to grow over time?
Or am I buying into a ghost chain with little to no activity and long term prospects?
Here are bridge flows for the top alt (non-BTC) chains.
Inflows go left to right, outflows go right to left. So a bar that is bigger on the right means the chain has more inflows than outflows. And if the bar is bigger on the left, it means the chain has more ouflows than inflows.
A couple of observations stand out:
- Solana, Ethereum, and the largest Ethereum L2s (Arbitrum, Base) absolutely dominate the flow picture.
- This is really a two-horse race between the Solana ecosystem and the Ethereum ecosystem.
- Some alt L1s that have been in the market for more than one cycle (Avalanche, Polygon, Fantom) are no longer young and growing, but appear instead to be withering and declining as network effects accrue to the biggest winners.
- Base and Arbitrum have more inflows than outflows. Perhaps surprisingly for an Ethereum L2, Arbitrum is having a lot of inflows from Solana. Whereas Base's inflows seem more diffuse.
- Once you get out of the big dogs, BNB is hanging in there, but still has more outflows than inflows, much of it to Solana, but really just bleeding in multiple directions.
- Lots of Reddit Cryptocurrency darlings like ADA and ALGO don't even make the graph.
Credit to deBridge for original creation of the graph.