Introduction

Time to get creative and explore! We want you to dig into a topic/project/protocol on Algorand that you find relevant and interesting and create an analysis around it. Bonus points for creativity and uniqueness!

Algomint

Algomint was the first bridge on Algorand that launched in 2022. It supports ETH and BTC, giving them the benefits of a scalable layer 1 blockchain such as

1. Fast transactions with less than 5 seconds finality.
2. Minimal transaction fees
3. Sustainability

Algomint token is now live on Algorand DEXes (Algofi, Pact and Tinyman).

Method

This analysis will focus on the daily minting and redeeming of goBTC & goETH since the governance token (goMINT) launch in late March.

In addition the price action of goMINT and Algo are provided to evaluate if there is a correlation between the general market conditions and daily bridge transfers.

goBTC & goETH are fully collateralised with native BTC & ETH, giving them the full power of the Algorand blockchain including its carbon neutrality. For each goBTC issued a carbon credit is also issued to neutralise its previous carbon footprint.

When the goBTC and goETH is ""minted"" by a wallet it is distributed from ETGSQKACKC56JWGMDAEP5S2JVQWRKTQUVKCZTMPNUGZLDVCWPY63LSI3H4 to the Algorand wallet. When a wallet wants to ""redeem"" their goETH and goBTC for their original asset, they send it back to the wallet it was distributed from.

Asset IDs

goBTC: 386192725

goETH: 386195940

goMINT: 441139422

Visualisations

• In the past 3 months daily minted goBTC has been very low.
• Only 3 days have more than 10 minted goBTC.
• It is very common to have less than 1 minted goBTC daily.
• Redeeming activity patterns are also similar, but with lower numbers.
• Overall, liquidity is added to Algorand via the BTC-goBTC bridge pair.

Insights

• Cross-chain activity is low since the launch of the Algomint token, confirming the hypothesis that bridge activity hibernates during bear markets.

• The timing of goMINT launch was not perfect, based on the market conditions.

• The impact of competitor bridges to Algomint is not examined further because all the other bridges are still very new.

• Having said that, bridges are a great tool for interoperability and they will have even more utility when they bridge stablecoin assets, such as USDC or USDT.

Reference

Past submission about Algomint.

The results aim to present the following data

1. goBTC daily bridge volume
2. goETH daily bridge volume
3. goBTC & goETH aggregation and comparison
4. goMINT & Algo price

• goETH bridge transfers are also lower in the past 3 months, compared to Q1 2022.
• Once again, more goETH is minted than redeemed through algomint.
• ETH and BTC holders are not willing to bridge their crypto assets because of the added risk and complexity.

• The orange bar charts are goETH and the blue bar charts are goBTC.
• Less than 20 addresses interact with the algomint bridge daily.
• goBTC USD volume is approximately equal to goETH.
• The number of wallets minting/redeeming goBTC is also very close to goETH activity.
• The TVL of both wrapped assets is less than $10,000,000.

The prices of Algo and goMINT are correlated, as they both decrease at the same rate over this time period, which shows that blockchain activity (DEX swaps, bridge transfers etc) are impacted by lower token prices.