Project : Solana

Bounty Name : Open Analytics Bounty: Solana (November 19)

Question: In the last few days, the native token price of Solana network has fallen a lot, and now let's see how the level of activity of bridges has been in this fall, and users have withdrawn their assets from Solana or they have bridged to this network.

Date of analysis : 2022-11-24

Solana

Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs.1

Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees than rival blockchains like Ethereum. The cryptocurrency that runs on the Solana blockchain—also named Solana (SOLUSD) and using the ticker symbol SOL. source

What Is Bridge

A blockchain bridge, otherwise known as a cross-chain bridge, connects two blockchains and allows users to send cryptocurrency from one chain to the other. Basically, if you have bitcoin but want to spend it like Ethereum, you can do that through the bridge.

One of the biggest problems of blockchain was the inability to work together. While fluid and somewhat efficient as single entities, each blockchain is limited by the walls of its own domain. Most often this can lead to high transaction costs and congestion.

Blockchain bridges solve this problem by enabling token transfers, smart contracts and data exchange, and other feedback and instructions between two independent platforms.

These blockchains mint different coins and operate on different sets of rules; the bridge serves as a neutral zone so users can smoothly switch between one and the other. Having access to multiple blockchains through the same network greatly enhances the crypto experience for most of us.

This concept is a lot similar to Layer 2 solutions even though the two systems have different purposes. Layer 2 is built on top of an existing blockchain so while it does improve speed, the lack of interoperability remains. Cross-chain bridges are also independent entities that don’t belong to any blockchain.source

About Wormhole

Wormhole is a decentralized, universal message-passing protocol that connects to multiple blockchains. In simple terms Wormhole allows different blockchains like Ethereum, Binance Smart Chain, Terra, Solana, Polygon, Avalanche and Oasis to communicate with each other. It addresses two of the main problems that plague blockchains today:

• Tokens are hard to move between blockchains without relying on centralized exchanges for bridging and swapping tokens. However, this means users are subject to counterparty risk.
• Decentralized applications (DApps) and smart contracts on different blockchains cannot communicate with each other, making interoperability between chains difficult to achieve.

Wormhole solves this by monitoring several chains for messages emitted by smart contracts on those chains. This is achieved through the Wormhole Core Layer, a core contract deployed on each chain that routs the received messages to the target chain, the core function of the previously mentioned universal message-passing protocol. A guardian network consisting of 19 nodes secures Wormhole.

This system enables cross-chain communication protocols like token and NFT bridges, cross-chain oracles and other messaging applications that would not operate without Wormhole's infrastructure. source

Methods

Tables I used: I use solana.core.fact_swaps for price of Sol,you can see how it is in my query. I use ethereum.core.fact_transactions for transactions of bridge and i count DISTINCT tx_hash for number of Bridges and count DISTINCT from_address for number of Users. I use ethereum.core.ez_token_transfers for volume of bridges and i sum amount_usd for volume of bridges.

Solana -> Ethereum:

Contract Address: 0x3ee18b2214aff97000d974cf647e7c347e8fa585

Function: 0xc6878519

Chain Id: 1

Ethereum -> Solana:

Contract Address: 0x3ee18b2214aff97000d974cf647e7c347e8fa585

Function: 0x0f5287b0,0x9981509f

Chain Id: 1

Metrics

• Sol Price

• Number of Bridges

• Number of Users

• Volume of Bridges (USD)

• Total Number of Bridges

• Total Number of Users

• Total Volume of Bridges (USD)

• Median,Avg & Max Bridge Volume (USD)

• Average Number of Bridges per User

• Average Volume of Bridges per User

• Top 10 Popular Asset Based on Transactions

• Top 10 Popular Asset Based on Users

• Top 10 Popular Asset Based on Volume

  All metrics are shown for Ethereum to Solana and Solana to Ethereum Bridge

Sol price fluctuations

In the last few days, or rather on November 7, the price of Solana network's native token started to fall. Now let's see what were the main reasons for this price fall.

Solana Unlock

Lock-in for Solana's staking was intended to finish on the 9th or 10th of November. Following the conclusion, 18,000,000 SOL tokens will be made available.

Given the recent events surrounding the FTX (FTT) crash and Solana's ties to the FTX, technical outlook predicted a double-dip for SOL as a result of the unexpected surge in supply.By delaying the unlock, the expected double-dip has also been delayed, providing Solana's developers more time to sell their SOL tokens at the present price before the token's value drops.

Solana Has Ties to FTX

In 2021, Solana attracted a diverse group of private investors, including Alameda Research, who contributed $300 million to the company's native token sale. In this round of funding, Andreessen Horowitz was the main investor. Fried's, a financial services provider, has kept its Solana blockchain integration.

Investors are concerned that SBF and FTX may lose their investments in Solana and its ecosystem. Worse, the Solana blockchain is currently having performance challenges. As a result, it's one of the primary reasons for Solana's bearish bias.The status dashboard for the Solana network shows that the network is now operating at a lower capacity. As a result, it appears that investors considering investing in Solana should proceed with care. source

Bridges Status Overtime

In the last month, the number of bridges to and from the Solana network was in a normal process and as always, and very normal users were bridging their assets, but on November 8, a sudden change in the number of bridges occurred and the number of bridges suddenly increases.

The number of Solana bridges in Warmhole did not reach more than 60 bridges on normal days, but the number of bridges increased greatly from November 8, so that the number of bridges reached 141 bridges on November 8 and 336 on November 9, which is several times the number of bridges. Bridges have been normal in one day and this number of bridges shows that we are not in normal days and this sudden fall in the price of Sol has had a great impact on the activity of users in the number of bridges.

On normal days, the amount of bridges from Solana to Ethereum was below 20%, that is, only one fifth of the bridges were from Solana to Ethereum, and 80% of the rest of the bridges were from Ethereum to Solana, but under the circumstances, the amount of bridges from Solana to Ethereum was 30%. Reached means that the number of bridges has increased by 10%, but there are still many more bridges from Ethereum to Solana.

The number of active users who do bridge has also increased a lot these days, because on normal days the number of users who did bridge was not more than 40 users, but the number of users reached 109 on November 8 and 212 on November 9. which is a very large amount compared to the previous day and this shows that in this price drop the number of users who wanted to bridge their assets has increased a lot and nearly 30% of these users wanted to bridge their assets from Solana to Ethereum Bridge and the rest of the users, i.e. 70% of the users, bridged their assets from Ethereum to Solana.

When we look at normal days, we can see that the volume of daily bridges did not exceed 1 million dollars, but on November 8, the volume of bridges reached more than 15 million dollars, and on November 9, it reached 37 million dollars, that is, many times one It was a normal day and almost 97% of the bridge volume was from Ethereum to Solana.

Bridges Total Stats

The total number of bridges from Ethereum to Solana in the last month was 1954 bridges, and on November 8, 9, and 10, the total number of bridges was 662 bridges, which means that 30% of the total bridges of the last month happened in these 3 days. It is too much.

During the last one month, the total number of users who performed bridge was 1264 users and the total number of users who performed bridge in these 3 days was 500 users, which means 40% of all users who performed their bridge in these 3 days. The day of doing and this means the price fall has caused many users to think about their asset bridge.

The total bridged assets, whether from Ethereum to Solana or from Solana to Ethereum, was $103 million, and the total volume bridged in these 3 days when the price of Sol fell was $63 million, which means nearly 60% of the total volume. The bridges have been in this bridge for these 3 days.

The largest bridged volume from Ethereum to Solana was $4.7m and the average bridged volume was $53,000, and the largest bridged volume from Solana to Ethereum was $1.2m and the average bridged volume was $23,000. And this means that users are more eager to bridge their assets from Ethereum to Solana.

Users Activity

Because users usually bridge their assets once, and because they don't pay a fee, they try to bridge all their assets at once, and as you can see, on average, users only transfer their assets from Ethereum to Solana once. They used to bridge, but in this situation, the number of bridges per user was 2 bridges, and this means that on average, each user has done twice as many bridges as normal days, and this means that the fall in the price of Sol has increased the activity of users. On normal days, the average volume of bridges per user was 50 thousand dollars, but in this situation, the average volume of bridges per user was 246 thousand dollars, which means that users have bridged very large volumes.

Solana -> Ethereum Popular Asset For Bridge

Users bridge many different assets from Solana to Ethereum, but in these 3 days, when the conditions were slightly different, the most bridges from Solana to Ethereum were related to USDC, and as you can see, during the last month, 30 The percentage of bridges were done with USDC and in total, in these 3 days, 31 bridges were bridged by 36 users with a volume of more than 2 million dollars. It is high and this means that these bridges were not done by normal users, because the amount of bridged USDCs is very high compared to the users who bridged, and this volume is not for a normal user.

The point is that because the price of Sol has fallen, users used it much less to bridge from Solana to Ethereum, and of course there is a clear reason for this, which is that Sol has not had a balanced price in these few days. And its price has decreased a lot, and that's why users don't take risks and don't bridge their assets

Solana -> Ethereum Active Users

In this chaotic situation that happened to Sol, we saw that many users tried to bridge their assets, among them there were users whose number of bridges was very high, and the highest number of bridges is for 0xd667f70d06026fd82eccd383e5e4ffcffac2355a, who has a total of 33 bridges. Sol network has done to Ethereum that the total volume bridged by this user was 45 thousand dollars, of course, the point is that the largest bridge volume is not for this user, but for 0x38abab9766e0b27d2912718a884292b8e7eb2803, which is a total of 1.3 million dollars. It has bridged itself from Sol network to Ethereum.

It seems that the number of very active users in the bridge from Ethereum to Sol is very high, the most active of which is 0x1f364b47ca9735ed3cd45c430f5320fdaaf78027, who has done a total of 189 bridges with a volume of 437,000 dollars, and the largest, of course, is not the largest volume of bridges for this user, but For 0x3c8d1abf82599f54519e477e194199720b06541f, who has bridged a total of 35 million dollars of assets from the Ethereum network to Sol.

Ethereum -> Solana Active Users

Thanks for reading

• All data used are from: Flipside Crypto

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• My Twitter: Sepehrmhz8

Conclusion

The fall in the price of Sol has caused a sharp increase in this bridge, and as you can see, even with the fall in the price of Solana's native token, Solana, most of the bridges have been to this network, and the users who left this network are less than the users who joined. It migrated and also the volumes bridged to Solana are very high and the most popular asset among bridged users is USDC.

Ethereum -> Solana Popular Asset For Bridge

In Ethereum to Solana bridge, it is the most popular bridge asset among USDC users, and during the last month, 40% of transactions from Ethereum to Solana have been done with USDC, and in these 3 days, the conditions are slightly different. Bode has been the most popular USC asset again, which is normal because USDC is a stablecoin and its value does not go up and down like other tokens, and its value is always fixed, and USDC supports It has a lot and many users use this stablecoin, so it is natural that it is the most popular asset.

In these 3 days, a total of 177 bridges were bridged by 116 users with a volume of 55 million USDC and it seems that this statistic is a bit suspicious because the volume of bridges is very high compared to the number of users and it seems that this Bridges have been huge for platforms and whales because normal users don't have that amount of assets