Crypto Bridges Tracking Inflows and Outflows to Identify Market Trends

CoinCu gathers data from various crypto platforms that offer real-time information on bridge activity by using APIs. We want to help users identify arising trends, recognize growing ecosystems, and respond quickly to market changes.
We provide a lean process for investors to track bridge flows, enabling them to make more strategic and well-informed decisions when trading cryptocurrencies, dealing with DeFi, and participating in NFT markets.

What Can You Expect From Tracking Bridge Flows?

If you keep an eye on the money coming in (inflow), going out (outflow), and the netflow (the difference between inflow and outflow), you can get a good idea of how much money is available, how confident people are in the market, and where prices might be headed.
As always, the provision of real-time update data is our prior goal for every piece of information.

#	Project	24H Deposits	24H Withdrawals	24H Net Flow	7D Deposits	7D Withdrawals	7D Net Flow
1		437.14 M	452.73 M	-15.59 M	2.59 B	2.95 B	-358.22 M
2	Ethereum	283.74 M	233.51 M	50.23 M	1.73 B	1.35 B	385.98 M
3		45.43 K	37.59 K	7.85 K	166.34 K	366.84 K	-200.5 K
4		27.22 M	27.59 M	-365.89 K	178.57 M	168.47 M	10.1 M
5	BSC	47.14 M	51.26 M	-4.12 M	198.58 M	225.88 M	-27.3 M
6		404.66	10.27 K	-9.87 K	6.12 K	10.99 K	-4.87 K
7		348.21 K	510.39 K	-162.19 K	3.46 M	3.09 M	369.99 K
8		132.15 K	37.78 K	94.36 K	455.09 K	442.71 K	12.38 K
9		5.03 K	37.83 K	-32.8 K	30.65 M	183.61 K	30.46 M
10		123.16 K	140.08 K	-16.92 K	294.56 K	503.87 K	-209.3 K
11		2.46 M	608.1 K	1.86 M	10.83 M	5.07 M	5.77 M
12		191.58 K	127.5 K	64.09 K	1.07 M	418.57 K	651 K
13	Polygon	9.62 M	6.99 M	2.63 M	79.47 M	50.41 M	29.07 M
14	Metis	1.01 M	1.21 M	-202.54 K	6.46 M	6.13 M	329.81 K
15	Avalanche	25.23 M	19.79 M	5.45 M	200.47 M	134.61 M	65.85 M
16		38.18 K	72.19 K	-34 K	150.27 K	150.23 K	45.1
17	Fantom	4.98 M	5.18 M	-209.25 K	69.04 M	67.26 M	1.78 M
18	Gnosis	177.28 K	242.53 K	-65.25 K	1.73 M	1.76 M	-30.55 K
19	Celo	3.48 M	3.48 M	6.02 K	10.08 M	9.19 M	890.16 K
20	Kava	157.73 K	153.16 K	4.57 K	4.33 M	4.69 M	-355.52 K
21	Axelar	884.67 K	1.76 M	-876.6 K	9.64 M	6.96 M	2.68 M
22	Canto	425.27	759	-333.73	6.89 K	2.43 K	4.46 K
23	Evmos	10.63 K	9.59 K	1.04 K	100.09 K	75.52 K	24.57 K
24	Injective	0	0	0	1.1 M	1.25 M	-147.54 K
25	Juno	41.24 K	54.33 K	-13.09 K	189.1 K	340.61 K	-151.51 K
26	Kava	157.73 K	153.16 K	4.57 K	4.33 M	4.69 M	-355.52 K
27	Kujira	126.48 K	263.37 K	-136.89 K	910.05 K	1.43 M	-517.69 K
28	Osmosis	9.52 M	8.19 M	1.34 M	60.03 M	60.27 M	-245.3 K
29	Secret	181.95 K	248.34 K	-66.4 K	1.24 M	1.35 M	-112.11 K
30	Sifchain	5.56 K	682.08	4.88 K	11.17 K	4.14 K	7.03 K
31	Stride	1.14 M	1.04 M	99.7 K	8.55 M	7.38 M	1.17 M
32	Terra Classic	110.51	0	110.51	25.54 K	11.74 K	13.8 K
33	Moonbeam	2.16 M	2.11 M	51.12 K	11.97 M	10.9 M	1.06 M
34	Flow	0	0	0	0	0	0
35	Telos	0	0	0	0	0	0
36	Boba	552.24	2.54 K	-1.99 K	15.64 K	18.4 K	-2.76 K
37	Rootstock	110.99 K	151.03 K	-40.04 K	4.6 M	1.7 M	2.9 M
38		7.91	0	7.91	266.46	15.58	250.89
39	Solana	38.1 M	48.17 M	-10.07 M	347.54 M	367.18 M	-19.64 M
40	Bitcoin	0	0	0	0	0	0
41	Astar	0	0	0	0	0	0
42	Dogechain	0	0	0	0	0	0
43	Fuse	0	0	0	43.07	21.57	21.5
44	Sui	11.55 M	6.57 M	4.98 M	80.02 M	76.95 M	3.08 M
45	Aurora	112.72 K	14.37 K	98.35 K	553.03 K	438.09 K	114.95 K
46	Klaytn	581.62 K	92.3 K	489.32 K	2.44 M	1.68 M	753.29 K
47	Near	0	0	0	5.27 K	2.07 K	3.2 K
48	Karura	3 K	0	3 K	18.28 K	14.68 K	3.6 K
49	Acala	643.72	0	643.72	121.94 K	14.37 K	107.57 K
50	Algorand	1.38 K	193.3	1.19 K	54.6 K	28.35 K	26.25 K
51	Terra Classic	110.51	0	110.51	25.54 K	11.74 K	13.8 K
52	Oasis	1.91 K	0	1.91 K	18.97 K	5.01 K	13.96 K
53	Moonriver	0	253.16	-253.16	119.03	547.3	-428.27
54	Cronos	48.5 K	229.13 K	-180.63 K	260.95 K	772.65 K	-511.7 K
55	ShimmerEVM	58.36	198.52	-140.15	86.41	1.77 K	-1.68 K
56	XDC	48.29	2.89 K	-2.84 K	48.29	18.86 K	-18.81 K
57	Wanchain	0	0	0	0	0	0
58	KCC	0	0	0	4.62 K	412.19	4.2 K
59		4.87 M	10.06 M	-5.19 M	61.43 M	126.78 M	-65.35 M
60	ThunderCore	0	0	0	0	0	0

What Are Crypto Bridges?

A crypto bridge, so-called a blockchain bridge, is like a digital highway that links different blockchain networks. The bridge allows tokens and information to move smoothly between separate blockchain ecosystems, such as Ethereum and BNB Chain. These bridges can also help with transfers between different layers within the same blockchain, like between Ethereum's main network and its Layer 2 scaling solutions.
Crypto bridges simplify the process of transferring assets between different chains with minimal effort and cost. Added to this is the fact that the process is smoother and gets rid of the need to go through centralized exchanges, which usually involves multiple steps like depositing, trading, and withdrawing assets.
By bypassing centralized exchanges, crypto bridges might speed up transactions and remove the need to trust a third-party middleman. Additionally, users may benefit from lower fees compared to traditional centralized exchanges, which typically charge a percentage for trades.

How Do Blockchain Bridges Work?

These bridges can be all different kinds some are decentralized, some are centralized, and some are a mix of both. There are two main ways that blockchain bridges help move assets around:

Wrapped Asset Method

Wrapped Asset Method lets you swap native assets from one blockchain for equivalent wrapped assets on another. For example, you could trade SOL from Solana for Wrapped ETH on Ethereum. Here's how it works:

First, you lock up the original asset (like SOL) in a smart contract.
hen, you get an equivalent wrapped asset (like WETH) on the other blockchain.
When you want to swap back, you just burn the wrapped asset, and the original one is released from the smart contract.

Liquidity Pool Method

Other bridges, like "Cross-Chain Bridge" and Synapse Protocol, use liquidity pools for moving assets around. For example, there are liquidity pools for WETH on BNB Chain and Polygon.

These bridges keep liquidity pools for different assets across different blockchains.
When someone wants to move WETH from Polygon to ETH on Ethereum, the bridge locks WETH on Polygon and releases the equivalent amount of ETH from a liquidity pool on Ethereum.

Additionally, to keep these pools going, bridges often have programs where you can stake and farm your assets in exchange for rewards.

Typical Types Of Crypto Bridges

Crypto bridges come in various forms, primarily differentiated by their underlying architecture and the level of user control they offer. The two main types are:

1. Trusted Bridges

Trusted bridges are centralized cross-chain protocols with the following characteristics:

Controlled by a centralized entity
Asset control transfers from users to the central authority during bridging
Users must trust the integrity and efficiency of the centralized entity
Prioritize speed and lower gas fees over cross-chain security
Example: Binance Bridge

2. Trustless Bridges

Trustless bridges are decentralized protocols that offer:

No reliance on a single central authority
Use of algorithms and smart contracts for facilitation
Greater user responsibility for funds
Higher level of decentralization
Enhanced security, albeit at potentially higher costs
Alignment with DeFi principles

While trusted bridges may appeal to users seeking speed and cost-efficiency, trustless bridges cater to those prioritizing decentralization and security in cross-chain transactions.

What Are Crypto Bridges Used For?

Cryptocurrency bridges play a pivotal role within the blockchain ecosystem. Here are the most fundamental use cases:

Transfer Crypto To A Different Blockchain

Bridges enable users to transfer cryptocurrencies across different blockchains. For instance, it is possible to transfer SOL from the Solana network to an Ethereum-compatible version on the Ethereum network.

Exploring Various Ecosystem dApps

Different blockchain ecosystems have unique sets of decentralized applications (DApps). Bridges facilitate asset transfers between chains, allowing users to explore and engage with DApps across various networks.

Cheaper Conversion

Bridges often offer reduced transaction fees compared to centralized exchanges, making them a preferred choice for users seeking efficient asset conversions across different blockchains.

Enhancing Liquidity

By connecting different blockchain ecosystems, bridges help improve overall market liquidity, allowing assets to flow more freely between networks.

Is Crypto Bridging Safe?

While crypto bridges offer efficient cross-chain transactions, they come with inherent risks that users should be aware of:

Centralized Theft Risk	Trusted bridges face the risk of centralized theft. The controlling authority could potentially misuse their power to steal users' funds.
Phishing Attacks via Cloned Websites	Scammers create fake bridge websites to deceive users. Always verify the authenticity of the bridge application before transferring funds to avoid falling victim to these schemes.
Smart Contract Vulnerabilities	Blockchain bridges have been prime targets for hackers due to their high fund volumes. Smart contract flaws can lead to significant financial losses.
Cybersecurity Threats	Research by DeFiLIama indicated that over $2.8 billion has been stolen from cross-chain bridges, highlighting the need for robust security measures.

Why Use Bridges Instead Of Exchanges?

There are various methods for transferring assets between different blockchains. While bridges are a popular option, crypto exchanges also provide cross-chain functionality.
For example, imagine a user holding USDT on the Binance Smart Chain (BSC) but wants POL (MATIC) on the Polygon network. They could use a centralized exchange like Coinbase to swap USDT to POL, store it in their Coinbase wallet, or transfer it to a Polygon-compatible wallet.

However, there are several reasons why some users prefer bridges over exchanges:

Lower Cost

Transfers to an exchange for asset swapping, and then a transfer to another wallet, usually mean multiple fees. In comparison, most bridges involve just one transaction fee, which in most cases is well below the cumulative fees charged by most exchanges.

Higher Speed

The process involving exchanges is usually pretty time-consuming, since one has to take many steps. Contrarily, bridges are much quicker and smoother.

Airdrop Eligibility

Many blockchain ecosystems reward users through airdrops for using decentralized applications and protocols. Unfortunately, users who rely on centralized exchanges often miss out on these valuable rewards.

Decentralized Solution

Lastly, many users appreciate bridges for their connection to the decentralized ethos of blockchain. Unlike centralized exchanges, wherein your assets are actually in their custody during a transaction, a bridge empowers users to higher degrees of control and autonomy.

How to Choose The Right Bridge Crypto?

When picking a crypto bridge, there are a few things to keep in mind:

Security: If you're all about safety, go for bridges that use wrapped assets with 1:1 backing.
Transaction Speed: For quick transfers, go for bridges that use liquidity pool methods.
Asset Compatibility: Make sure the bridge supports the specific cryptocurrencies you want to transfer.
Decentralization Level: If you want a trustless system, look for bridges with decentralized liquidity pools or wrapped asset methods using decentralized custody.
Fees: Compare transaction costs across different bridges to find the most cost-effective option for your needs.

Frequently Asked Questions (FAQs)

What is the best bridge for crypto?

Indeed, the best bridge for you will depend on what works best for you, such as security, speed of transaction, and asset compatibility. Always do your research-you need to read user reviews and make sure the bridge supports the cryptocurrencies that you will be transferring.

What Are The Risks Of Blockchain Bridges?

Blockchain bridges come with several risks, both for trusted and trustless approaches:

Centralization vulnerabilities:
- Trusted bridges face fundamental flaws due to their centralized nature
- Centralization can create a single point of failure
Smart contract exploits:
- Trustless bridges are susceptible to vulnerabilities in their underlying code
- Malicious actors actively seek to exploit any flaws in smart contracts
Evolving cyber threats:
- As the cryptocurrency industry grows, hackers become more sophisticated
- Traditional cyberattacks like phishing have adapted to target Web3 protocols

Is there a bridge between Ethereum and Solana?

There are bridges, like the Wormhole bridge, which generate transactions between Ethereum and Solana. It allows transferring user assets across both networks to different DApps and ensures better liquidity.

What is inflow and outflow in crypto?

Inflow is about how much is coming into a particular blockchain or liquidity pool, whereas outflow represents the amount leaving that blockchain or pool. By tracking them, investors know the sentiment of the market and what kind of liquidity is available.

What is netflow in crypto?

Netflow describes the difference between inflow and outflow during any given period. It gives insight into the overall flow of assets in and out of a network. A positive netflow is indicative of growing interest and confidence in the ecosystem, while negative netflow might suggest a fall in user confidence.

How does money flow in crypto?

Crypto, in general, is dependent upon the flow of money through main-chain transactions. Although wallets can send and receive assets, some rely on bridges to send and receive on other blockchains. Market dynamics, or supply and demand, also play a huge role; inflow and outflow of money from exchanges and pools serve as the major indication of market trends.

What is the bridge fee for crypto?

Some of the fees that bridges charge vary based on the underlying platform and the assets that are transferred. The transaction fees are generally quite low compared to the fees charged through centralized exchanges. It is recommended that the fee be looked over at more than one bridge in order to find the best one for the low cost of a particular case.

Is bridging crypto taxable?

Tax implications regarding bridging crypto will differ depending on the jurisdiction. In many regions, transferring assets between blockchains may be counted as a taxable event-as would be the case with selling or trading such assets.

How can I effectively track bridge flows?

For example, you might be able to use some platforms like CoinCu to get real-time data on inflow, outflow, and netflow. Our page assist investors in better decision-making, as they could subsequently recognize emerging trends and timely react to market changes.