Hop allows users to send tokens from one rollup to another almost immediately without having to wait for the rollup’s challenge period. Liquidity providers deposit funds into Hop AMM pools and receive trading fees from traders (supply-side fees).

Hop is a scalable rollup-to-rollup general token bridge. Hop was co-founded by Christopher Whinfrey and launched in 2021.

HOP tokenholders own and govern the protocol. They currently take a cut of the total transfer fees paid by users (revenue). Hop’s investors include 1confirmation, Infinite Capital, etc.

governance

github

twitter

discord

etherscan

website

Bridges

Hop Protocol

# Hop Protocol Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the daily revenue generated per active user on the Hop protocol. ARPU is calculated by dividing total daily revenue by the number of daily active users, providing insight into the protocol's monetization efficiency and user value. The metric focuses on bridge transfer activity across Hop's multi-chain infrastructure and revenue from bonder fees charged on cross-chain transfers.

## 2. Data sources

The calculation uses the following raw data sources:

- **Hop bridge contract events**: Parsed `TransferSent` events from Hop L2 bridge contracts on Arbitrum, Optimism, Polygon, and Base networks
- **Hop bridge contract events**: Parsed `TransferSentToL2` events from Hop L1 bridge contracts on Ethereum mainnet
- **Bridge transfer data**: Cross-chain transfer amounts, bonder fees, recipient addresses, and destination chain information from bridge contract events
- **End-of-day price feeds**: Token price data for USD conversion of bonder fees
- **Token metadata**: Token contract addresses, symbols, and decimal specifications for supported assets including USDC, DAI, ETH, USDT, WBTC, HOP, MAGIC, RETH, SNX, SUSD, and MATIC
- **Chain mapping data**: Chain ID to chain name mappings for supported networks

## 3. Step-by-step calculation

### Component A: Daily active user identification

- **Purpose**: Count unique users who performed bridge transfers each day
- **Logic**: Extract recipient addresses from all Hop bridge transfer events across supported chains. For Ethereum L1, capture recipients from `TransferSentToL2` events from various token-specific L1Bridge contracts. For L2 chains (Arbitrum, Optimism, Polygon, Base), capture recipients from `TransferSent` events from corresponding L2Bridge contracts. Truncate event timestamps to daily boundaries and identify unique recipient addresses per day
- **Key fields**: `recipient` addresses from bridge events, `block_timestamp` truncated to day, `chain` identifier, and `user_type` classified as 'Trader'

### Component B: Daily revenue calculation

- **Purpose**: Calculate total bonder fees collected from bridge transfers each day
- **Logic**: Extract bonder fee amounts from L2 bridge transfer events across all supported chains and tokens. L1 transfers do not generate bonder fees (set to 0). Sum `bonderFee` amounts from `TransferSent` events, convert token amounts to USD using end-of-day price feeds, and correct for token decimals using metadata. Aggregate fees by day across all chains and supported tokens
- **Key fields**: `bonderFee` amounts from L2 transfer events, `token_address` for price lookup, `block_timestamp` for daily aggregation, and `amount` values after USD conversion

### Component C: User aggregation with HyperLogLog

- **Purpose**: Efficiently aggregate unique user counts across different dimensions
- **Logic**: Use HyperLogLog data structures to count distinct users while supporting dimensional breakdowns. Create aggregations for project-level totals, chain-level breakdowns, user type breakdowns, and product-level breakdowns. Merge HLL sketches and extract final counts for each dimension combination
- **Key fields**: HLL sketches of `user_dau` addresses, `chain_id` for chain breakdowns, `user_type` for user classification, and `dimensions` for aggregation levels

### Final aggregation

- **Combining components**: Join daily revenue totals with daily active user counts by date and relevant dimensions (chain, user type, etc.). The `calculate_arpu` macro performs the division operation
- **Currency conversion**: Revenue amounts are converted to USD using end-of-day token price feeds before aggregation, with proper decimal correction applied based on token specifications
- **Time aggregation**: All data is aggregated to daily boundaries using timestamp truncation, with consistent day-level granularity across user and revenue calculations
- **Final calculation**: ARPU equals total daily revenue in USD divided by the count of unique daily active users, calculated using the `calculate_arpu` macro with `finalize_metric_arpu` applied for formatting and zero-filling missing days

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Hop ProtocolHOP

Average revenue per user (ARPU)

Average revenue per user (ARPU)

Competitive landscape