Analyze Bridge Users Using Hop Protocol

The purpose of this article is to explore how many unique users have bridged to L2s using Hop? In the past 6 months, what days have seen the most volume bridged, and were there any specific events behind these spikes? In which assets have the most bridges been built? Analyze hop’s asset distribution for bridging.

What is Hop Protocol ?

Hop is a general token bridge that allows rollups to exchange tokens between each other. Rather than waiting for the networks challenge period, users can send tokens almost immediately from one rollup to another.
Essentially, the bonder fronts the liquidity at the destination chain for a fee, which is paid by the market makers.An AMM swaps the hTokens for their counterparts in native tokens extending credit through Bonders .By using this system, tokens can be seamlessly transferred between networks.

A Hop Protocol allows users to connect different scaling solutions when moving assets, making it easier for them to move assets. With Hop, funds can be transferred in ETH, USDC, MATIC, DAI, and USDT between Mainnet, Polygon, Optimism, Arbitrum, and xDai networks. That means , using Hop Protocol, tokens can be quickly and easily transferred between layer-2s, sidechains, and layer-1 Ethereums.

The graphs below show an analysis of bridged L2s using Hop by Token for the past six months based on unique users, transactions, and transfer volume.

An Analysis Of Bridged L2s Using Hop By Token 

Below is a graph showing an analysis of unique users using Hop protocol for past six months that are bridged to L2s on a weekly basis. The number of users in W22 (May 29-Jun 4), 2022 and W52 (Dec 26-Jan 01), 2021 is higher than normal. A growth trend in Unique users can also be seen during April 2022 than in previous months. 

Below is a graph showing transactions bridged to L2s using Hop protocol for the past 6 months period on a weekly basis. During the week of May 29 to June 4, 2022, the number of transactions spiked greatly, and they are higher than usual. In terms of total transactions, the lowest is 2 (WBTC) and the highest is 192.74K (ETH). 

Here from the below graph we can see the volume by token wise which are bridged to L2s using Hop protocol for past 6 months period. More than three quarters (78.12%) of total Volume(usd) were accounted for by ETH Tokens. In terms of total Volume(usd), the lowest total Volume(usd) is 0.45 (WBTC) and the highest is 849.94M (ETH). It was observed that the maximum amount of Volume(usd) was 16.14M on June 1, 2022.

The below heatmap shows the volume by token wise which are bridged to L2s using Hop protocol for past 6 months period. Here we can see on Feb 24th, Apr 14th and Jun 1st the spikes were happened on Volume .

Graph below shows the week by week distribution of token volume over the past six months. Due to the huge increase in WBTC’s volume during April 10-16 2022, we can see this. Maybe that’s why the volume spike happened this week. As well as the spikes on Jun 1st and Jan 23-29 week 2022, which are evident because of the increased USDT volume during those periods.

This graph illustrates the volume distribution by token for the past 6 months, and ETH contributes almost 75% of the volume. In second place, USDC contributes 16% to the volume.

Based on the above analysis, we can see that Volume spikes occurred on June 1st and April 14th 2022. Maybe these spikes are related to the market volatility in crypto. There was also an unexpected increase in WBTC volume on April 14th 2022. Furthermore, USDT volume increased substantially on Jun 1st 2022 compared to before, which may also be a factor in volume spikes in this hop protocol. 

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