- The IBC protocol stands out in its scale, connecting over 117 blockchains, while LayerZero’s Stargate and Circle’s CCTP had over $1B in monthly transaction volumes from May to October 2024.
- Improving the overall experience for users is paramount. Intent-centric/solver-based bridging protocols have emerged as the preferred method for quick and cheap cross-chain asset transfers.
The Interchain Foundation has released its 2024 Cross-Chain Interoperability Report, shedding light on significant trends and data in the blockchain interoperability landscape. The report details substantial progress in cross-chain protocols and outlines key insights for future advancements.
As of October 2024, the total value locked (TVL) across 43 major interoperability protocols has surpassed $8 billion, with Ethereum dominating the cross-chain inflow and outflow markets at 38.9% and 47.9%, respectively. The Ethereum-to-Arbitrum route alone accounted for $10.7 billion in transactions, highlighting its significance in the cross-chain ecosystem.
Among the standout protocols, the IBC protocol leads with its extensive network, connecting over 117 blockchains, while LayerZero's Stargate and Circle’s Cross-Chain Transfer Protocol (CCTP) reported over $1 billion in monthly transactions from May to October 2024. Circle CCTP and IBC also noted high activity, each boasting over 1.5 million monthly active addresses.
The report discusses the rise of intent-centric and solver-based bridging protocols, which provide faster and more cost-effective cross-chain asset transfers. These innovations are key in enhancing user experiences and addressing scalability issues. Additionally, Zero-Knowledge Proofs (ZKPs) are emerging as a noteworthy development for verifying cross-chain transactions, eliminating reliance on third-party validators, and improving transaction scalability.
Josh Cincinnati, Foundation Council President of ICF, emphasized the importance of overcoming challenges in connecting previously isolated blockchain networks, acknowledging the complexity yet highlighting the industry's efforts to create more secure and user-friendly cross-chain solutions.
Susannah Evans, IBC Product Manager at Interchain Inc., highlighted interoperability as crucial for blockchain projects, enabling them to focus on innovation and user differentiation instead of high exit costs. This fosters better application design through cross-chain workflows.
The report is not just reflective of current achievements but also serves as a strategic guide for future developments. By tackling security concerns and improving user interfaces, the industry can foster more seamless cross-chain interactions, ultimately facilitating broader innovation and scalability in blockchain ecosystems.
