Introduction

Squid is a relatively new entrant in the world of cryptocurrency and decentralized finance. It was launched in 2020 with the goal of solving one of the most pressing issues in the DeFi space - the lack of interoperability between various blockchain networks. While there are several blockchain platforms, each with its unique features and advantages, their lack of compatibility often leads to fragmentation and silos. This makes it difficult for users to transfer assets between different blockchains and access a broader range of decentralized finance applications.

Squid seeks to address this issue by providing a bridge protocol that enables cross-chain asset transfers between different blockchains. The protocol utilizes a network of smart contracts to automate and streamline asset transfers, ensuring that transactions are secure, efficient, and transparent. With Squid, users can transfer assets seamlessly between different blockchain platforms without needing to worry about the underlying technical details.

One of the key benefits of Squid is its ability to provide liquidity to the DeFi ecosystem. By enabling cross-chain asset transfers, Squid can improve liquidity by bringing together various liquidity pools from different blockchain networks. This, in turn, can help reduce the cost of trading and increase trading volumes on decentralized exchanges.

Methods

In this analysis we will focus on Squid. More specifically, we will analyze the following data:

• Daily number of transactions on Squid
• Daily user activity on Squid
• Daily volume on Squid
• Transactions per user on Squid
• Daily new users on Squid
• Distribution of volume over time by bridge
• Distribution of transactions over time by bridge
• MoM volume executed by bridge
• MoM number of transactions by bridge

Squid has experienced significant growth in user activity and transactions since February. In terms of daily transactions, there has been a steady increase from February to May, with March having the highest number of transactions at 53.

In the daily user activity, there has also been a significant increase from February, with user activity going from 4 to 26 users per day. March saw almost 50 users in activity, and the trend has been fairly stable since then. The daily volume on Squid experienced a radical peak on April 6th, with 359k volume, and has been fluctuating constantly since then, currently ranging between 20k and 50k in volume.

The number of transactions per user has decreased since December, where there were about 4 transactions per user, and has been stable between 1 and 1.2 transactions per user since February.

Lastly, it can be observed that the number of new users grew dramatically in mid-March, and currently, there are a total of 18k users. Overall, the graphs suggest that Squid has been experiencing steady growth in user activity and transactions, with some fluctuations in daily volume.

Celer cBridge is the dominant bridge in the distribution of volume over time, while Stargate has been gaining more momentum during the last month. In contrast, Squid has a negligible volume compared to the other bridges, suggesting that it is not as widely used.

Similarly, when looking at the distribution of transactions by bridge, Squid has very few transactions compared to the other bridges. Since the beginning of April, almost all transactions have been executed on Stargate, indicating a shift in usage patterns.

Looking at the MoM volume executed by bridge, Stargate remains the clear leader with 67M volume in the last few days, while Squid has a total of only 16.5k in volume. This once again highlights the significant disparity in usage between Squid and other bridges.

Finally, while Squid is showing some growth in the MoM number of transactions, it is still far behind the other Bridges in terms of the total number of transactions. Overall, these graphs suggest that Squid has a lot of ground to make up if it wants to compete with other bridges in terms of usage and volume.

Key insights

• In the daily number of transactions on Squid, the number of transactions increases from February of this May. In March is when there is a higher number of transactions, reaching 53.
• In the daily user activity on Squid, it goes up quite fast from February, going from 4 to 26 users per day. In March it reached almost 50 users in activity. Today there is a fairly stable trend.
• In the daily volume on Squid, there is a radical peak on April 6th, with 359k volume. It goes up and down constantly. Today it is between 20k and 50k in volume.
• In December there were about 4 transactions per user. However, since February it has been stable between 1 and 1.2 transactions per user.
• In the middle of March the number of new users grew dramatically. Today there are a total of 18k users.
• In the distribution of volume over time by Bridge, Celer cBridge predominates and during the last month Stargate has gained more strength. Squid has a negligible volume compared to the other bridges.
• In the distribution of transactions by bridge, Squid has very few transactions compared to the other bridges. Since the beginning of April, almost all transactions are executed on Stargate.
• In the Mom volume executed by bridge, Stargate continues to lead the other bridges, with 67M volume in the last few days, while Squid has a total of 16.5k in volume.
• In the MoM number of transactions, Squid is growing progressively but is far behind in the number of transactions with the other Bridges.