KEYTAKEAWAYS
- Berachain, Base, and Sonic Lead in Cross-Chain Bridge Inflows
- Montana House Rejects Bitcoin Reserve Bill
- Stablecoin Total Market Cap Exceeds $226.5 Billion
CONTENT
DATA: BERACHAIN, BASE, AND SONIC LEAD IN CROSS-CHAIN BRIDGE NET CAPITAL INFLOWS OVER THE PAST 7 DAYS
On February 24, according to DefiLlama data, in the past 7 days, Berachain’s cross-chain bridge net capital inflows reached $85.47 million, ranking first among all public chains. Following closely are Base and Sonic, with net inflows of $48.28 million and $37.98 million, respectively.
On the other hand, Ethereum, Avalanche, and BSC saw net outflows of $135 million, $110 million, and $58 million, respectively.
Analysis:
Cross-chain bridges facilitate the transfer of assets between blockchains by “locking” assets on one blockchain and “minting” or “mapping” corresponding tokens on another blockchain.
For example, if you have some Ethereum (ETH) and wish to transfer it to the Solana network for use, you can lock those ETH tokens on the Ethereum blockchain and mint an equivalent token on Solana. You can then use this token on Solana as if it were the ETH on Ethereum.
When users wish to transfer funds back to Ethereum, they simply exchange the Solana-based token back to ETH through the cross-chain bridge and unlock the equivalent amount of ETH from the Ethereum network.
For an emerging blockchain, capital inflows into its cross-chain bridges represent market confidence in its future prospects. Larger inflows indicate that the network has the potential to become a mainstream chain, attracting more funds and applications. Therefore, cross-chain bridge capital inflows help enhance market trust and project credibility.
MONTANA HOUSE REJECTS BITCOIN RESERVE BILL
On February 24, the Montana House voted on February 22 against a proposed bill that aimed to designate Bitcoin as a state reserve asset.
The bill proposed the establishment of a special revenue account to invest in precious metals, stablecoins, and digital assets with a market value over $750 billion, with Bitcoin being the only asset meeting this criterion.
The bill faced opposition from several Republican legislators, who argued that it would lead the state investment board to engage in excessive speculation using taxpayer funds, posing high risks. Supporters, however, believed that rejecting the bill would cause the state government to miss out on opportunities to increase fund returns. The bill is now essentially shelved, and to be reconsidered, it would need to be submitted for legislative review again in the future.
Analysis:
Although Montana has not passed the bill to use Bitcoin as a reserve asset, this proposal demonstrates the potential for Bitcoin to be recognized as a national or local reserve asset, particularly in the context of long-term appreciation.
However, due to Bitcoin’s volatility and regulatory uncertainty, many traditional financial decision-makers remain cautious about such innovations. As the digital currency market matures further, similar proposals may emerge in other regions, making it an issue worth monitoring.
STABLECOIN TOTAL MARKET CAP EXCEEDS $226.5 BILLION
On February 23, according to DefiLlama data, the total market cap of stablecoins in the crypto market reached $226.51 billion, an increase of $1.214 billion over the past 7 days, marking a 0.54% growth. Among this, USDT’s market cap accounts for 63.11%.
Analysis:
The steady growth in the total market cap of stablecoins indicates that the demand for digital assets remains strong, especially in volatile market conditions, where investors increasingly turn to stablecoins as a safe haven in the digital currency space.
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