Top Chinese Chains Bridge as Ethereum Transaction Fees Peak
Ethereum on-chain USD transaction fees hit the second highest level in history on Tuesday April 20 just as Conflux permissionless Layer 1 public blockchain launched a multi-chain asset solution that enables bi-directional interoperability for digital assets across several chains including those prominent in Asia.
According to Glassnode, total fee revenue on the Ethereum network has exceeded $10 mln/day since February 1. The decentralized finance (DeFi) ecosystem, decentralized exchanges and mass centralized exchange withdrawals dominate gas fees with exchange related gas fees falling to only ~5% dominance, the crypto analytics firm had noted in a recent analysis.
As a regulatory compliant public blockchain in China, Conflux’s mainnet release of ShuttleFlow births the first cross-chain bridge to support the blockchain networks of Binance (Binance Smart Chain), Huobi (ECO Chain), and OKex (OKex Chain)—the most widely used digital asset exchanges in Asia—in addition to Ethereum whose network’s on-chain fees hit $47.3 mln per day to come close to the all time high of $49.8 mln set on February 23.
“The cross-chain circulation of assets issued on multiple chains has drained project developers’ energy and hindered liquidity, which fragments and hurts our industry as a whole,” said Eden Dhaliwal, Global Managing Director at Conflux. “Using Conflux’s high performance, permissionless infrastructure as the foundation, ShuttleFlow is enabling a new level of interoperability between and across multiple chains with a focus on bridging DeFi development between the East and the West.”
The interoperability solution comes as the number of addresses holding 10,000 ETH reached a new all time high this week even as Ethereum seeks to lead the cryptocurrency market’s attempt to recover while the price of Bitcoin underperforms, according to OKEx Insights.
Meanwhile, the rapid rise of the DeFi ecosystem on Ethereum continues to fuel the migration of digital assets from various centralized services to decentralized alternatives with DeFi Pulse reporting a total value locked in DeFi protocols to be nearly 3x (from about $16 bln to $45 bln in Q1 2021).
Many public chains had to launch one-to-one cross-chain swaps which limited functionality because of the high gas prices required to perform transactions. ShuttleFlow provides decentralized application (DApp) developers with solutions to integrate multi-chain asset deposits and withdrawals at a low cost, while building cross-chain bridges and related infrastructure with Conflux Network as the transit chain, which allows for a high volume of transactions per second without sacrificing decentralization or safety.
The solution’s testnet version was launched in Q1 2020 to support over 49 assets from Bitcoin to Ethereum. It completed the world’s first cross-chain multi-asset migration of digital assets worth US$7.6 mln USD. Since then, ShuttleFlow has successfully migrated cross-chain assets with a total value of more than $25 mln.
The possibility of having a peaceful interoperability of multiple coin communities in the long run has been a subject of interest among major public chains in the past. One of such is during Ethereum developers’ conference (DeVCon 5) where a panel moderated by Ethereum’s Vitalik Buterin touched on possible communities and technical collaborations. Also, Loom Network had announced its plan to release an interoperability link for TRON and EOS into a shared Ethereum sidechain that supports top 100 Ethereum-based ERC 20 tokens including six stablecoins.