Question:

Welcome to Axelar! What better to way to get used to Axelar data than to analyze how people enter the ecosystem? With that in mind, analyze the activity that occurs on Axelar's Satellite Bridge. Since inception, what are the top paths over Satellite. by volume and $ amount? What is the most used token to transfer (USDC, wETH, wAXL, etc.)?

Overview of analysis:

This analysis contains three main parts to investigate the activity of bridge in Axelear network:

• Inflow and outflow by bridge
• Chain analysis and draw a path of asset transferring
• The most used tokens for bridge into or from Axelar

The time base analysis done on the weekly basis over this dashboard.

About Axeler:

The Axelar network serves as the infrastructure for inter-chain exchanges. Axelar acts as both a bridge and a platform for cross-chain communication between smart contract protocols. Axelar bridging makes it possible to send tokens across different blockchains, while Axelar second feature allows decentralized applications to run on different networks.

Recently Axelar announced the launch of its native token called AXL.

Satellite is one of the first ecosystem applications powered by the Axelar Network. Satellite is a decentralized cross-chain asset transfer application, which enables users to transfer assets they hold on a source chain to an address on a different destination chain.

Methodology:

The data provided by Flipside has been used to handle this analysis.

In this analysis, the following topics have been covered:

• The used table→ axelar.core.fact_transfers

• Inflow and outflow analysis→ where transfer_type in ('IBC_TRANSFER_IN','IBC_TRANSFER_OUT')

• Identification of chains→ ==By the use of the first words of sender and receiver address==

  regexp_substr (sender,'[a-zA-Z]+|\d+') as source_chain

• Drawing a bridge path→ CONCAT(source_chain,' -> ',Destination_chain)

• Token selection→ use currency and osmosis.core.dim_prices to find the USD value of transferred asset

• Which token mostly used to bridge in and out of Axelar?

Part 1: Analysis of bridge in and out

Findings:

This part determines the inflow and outflow from Axelar network by Satellite bridge:

• The inflow transfers are more than outflow as can be seen.
• From the last week April 2022, the transfers from Axelar to other networks increased.
• The domination of inflow into the Axelar network is dramatically high from the USD value of transfers.
• The average transfer volume in USD for inflow transfers is about 4 times larger than outflow from Axelar.
• On May 9-16, the highest volume of transfer into the Axelar happened and we all know the Terra crush had huge impact on it.
• From the users point of view, the highest participation on bridge transfers occurred on February 21 to 28, 2022.

Part 2: Analysis by chains

Findings:

In the second part of this investigation, the detailed analysis related to the source and destination chains has been done. Also, the Transfer path has been drawn according to the path of transfers by Satellite bridge.

• The most popular source chain that send assets into the Axelar is Terra and the Osmosis stands in the second rank.
• Over 340 million USD has been send into the Axelar network from Terra blockchain by about 56k unique senders.
• From the destination part aspect, the most used chains that users transfer assets from Axelar into them are Osmosis, Evmos and Cre.
• The highest count of users by destination bridge belong to Osmosis network.
• The highest average transfer volume by source and destination bridges belong to INJ as can be seen.

Now lets see the popular transfer paths through Satellite bridge:

• The most popular transfer path is Terra→Axelar path and the Osmosis→Axelar path takes the second rank.
• Osmosis→Axelar path has over 147 million USD transfer volume as can be seen.
• INJ→Axelar with about 470k USD as average transfer volume has been dominated the transfer paths in average sent asset in USD.
• The most of the transfers through Terra→Axelar happened before middle of May 2022 and after that date, the transfers through this path have been decreased significantly.
• The cumulative analysis of transferred volume in USD for various paths indicates the break point. For example, Terra→Axelar path has breakpoint on May 2-9, 2022.

Part 3: Analysis by tokens

Findings:

The final part of analysis talk about the most used token transferred through Satellite bridge on Axelar.

• From the count of transfers, the AXL token has the highest application. USD, USDC and LUNA have the next ranks, accordingly.
• From the USD value of transfer for tokens through Satellite bridge, it can be seen that the USD and USDC has the highest transfer volume. Luna with over 118.4 million USD value has the third highest transfer volume by bridges on Axelar.
• The average transfer volume in USD has been dominated by INJ token with near 2 million USD.
• Now lets see each token used for what? Transfer into the Axelar or from Axelar to other chain?
• The AXL token mostly has been used for transfer from Axelar to other chains.
• The XKI token has equal usage for transfer in and out from Axelar.
• Other tokens mostly used for transferring into the Axelar from other chains.
• Before May 9, 2022 the domination among tokens held by USD and Luna tokens but after that date, the USDC takes the first rank.
• Also, the AXL token has been emerged since last week of September, 2022 in the transferred assets by bridge.

Conclusion:

By considering the outcomes of this analysis the following statements could be concluded:

• Most of the transfers on Satellite bridge are for transferring into the Axelar network from other chains.
• Mostly, users sent their assets from Terra to Axelar and on the other side, from Axelar to Osmosis.
• USD, USDC and Luna have more application on Satellite bridge over other tokens.
• Among popular tokens, the USDC has growing trend for transferring through Satellite bridge over time. Also, the application of AXL token has been increased since its launch.

Useful links:

• Axelar network
• Satellite Bridge
• GitHub doc

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani