Question:

What is the volume of ETH and three stablecoins of your choice that's moved between the Optimism network and the Ethereum network across the bridge?

How has that changed over time? Note any interesting trends or outliers that you see.

Overview of analysis:

This analysis contains three major part:

• General stats of bridge from Ethereum to Optimism and vice versa
• Bridge performance over time
• Token analysis for bridge performance

Two parameters have been used to set the time period and basis of this analysis. By the use of these parameters you can find out the bridge stats over time.

About bridge between Ethereum and Optimism

The Optimism Network is a second layer solution, which was created to solve the scalability problems of the Ethereum network.

Optimism is designed so that users can send arbitrary messages between smart contracts in Optimism and Ethereum. This feature enables the transfer of assets, including ERC20 tokens, between the two networks. The exact mechanism of this communication varies depending on the direction in which messages and tokens are sent. To send messages from Ethereum to Optimism, users only need to activate the CTC contract on Ethereum to create a new block on the Optimism network. User-created blocks originate from the wallet address by which the block was created.

Because it is not possible for smart contracts based on the Optimism network to easily transact on the Ethereum network (the opposite is true), the process of sending data from Optimism to Ethereum is more complicated than before. In this process, instead of automatically creating authenticated transactions, it is necessary to create a provable state about the state of the Optimism network for existing contracts in Ethereum.

Methodology:

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

This dashboard divided into the three major sections as below:

• General and over time stats→ Total bridge count, Volume of bridge, average bridge volume per day and average user bridge per day

• Bridge over time→ 7-Day moving average bridge volume

• Token analysis→ find out the bridge activity for ETH, USDC, USDT, DAI and LUSD for:

  • Bridge from Ethereum to Optimism

    from ethereum.core.ez_token_transfers

    where origin_to_address = '0x99c9fc46f92e8a1c0dec1b1747d010903e884be1'

  • Bridge from Optimism to Ethereum

    from ethereum.core.ez_token_transfers where origin_to_address = '0x25ace71c97b33cc4729cf772ae268934f7ab5fa1'

  \

Part 1: Bridge stats

Findings:

• The results are for bridging selected tokens including ETH, USDC, USDT, DAI and LUSD.

• The count and volume of bridge have been dominated by Ethereum→ Optimism path as can be seen.

• The Ethereum→ Optimism path has about 384 unique users per day but Optimism→ Ethereum has only 5.4 user per day.

• The volume of bridge for Ethereum→ Optimism path is about 4.2 million USD per day for the 5 selected tokens.

  \

Part 2: Bridge performance over time

Findings:

• The highest sale and user count belong to the first week of June, 2022 but from volume aspect, the first week of August has highest bridge volume in the selected time period.
• The highest average bridge volume is dominated by Optimism→ Ethereum on the last week of May 23, 2022.
• The bridge from Ethereum→ Optimism is higher than Optimism→ Ethereum over time.

Part 3: Token analysis

Findings:

In this part we find out that each of the selected tokens has been followed which path of bridge between Ethereum and Optimism.

• The USDC has highest application among the top 5 selected tokens that bridged between Ethereum and Optimism.
• The DAI has been used for bridge from Optimism→ Ethereum mostly but other tokens have been used to bridge from Ethereum→ Optimism.
• The average volume per day for selected tokens reveals the highest average volume for USDC on two various paths.
• Also, mostly users sent ETH from Ethereum→ Optimism by over 1.75 million USD per day.

Part 3.1: Bridge from Ethereum→ Optimism

Findings:

First look at the stats bridge from Ethereum→ Optimism over time:

• In the first week of June, 2022 about 9400 unique users bridged ETH with volume of 62 million USD.
• Also in the first week of June, 2022 over 178 million USD as USDC token bridged rom Ethereum to Optimism network.
• The cumulative analysis shown the breakpoints of bridge from Ethereum to Optimism.

Part 3.2: Bridge from Optimism→ Ethereum

Findings:

For bridging from Optimism→ Ethereum we can say that:

• Users mostly bridge USDC, DAI and ETH from Optimism to Ethereum.
• The first week of September, 2022 has the highest volume of bridge for various tokens and over 72 million USD for USDC token.
• The second week of September, 2022 is dominated by DAI token with over 45 million USD bridge volume.

Conclusion:

• People mostly bridge from Ethereum to Optimism network over time.
• The USDC is most used token for bridging between Ethereum and Optimism.
• The DAI has tremendous application for bridging from Optimism to Ethereum after USDC token.

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Useful links:

• Introduction to bridge from Ethereum to Optimism
• Ethereum docs for bridge to Optimism