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.

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Hop Protocol

# Hop Protocol Transfer volume Methodology

## 1. Overview

Hop transfer volume measures the total USD value of assets transferred daily through the Hop Protocol bridge infrastructure across supported blockchains. This metric captures the economic activity flowing through Hop's cross-chain bridge system by aggregating all bridge transfer events and converting them to USD values. It answers the business question: "What is the total value of assets moved through Hop bridges on a daily basis?" The calculation aggregates parsed bridge contract events from multiple chains, converts transfer amounts to USD, and organizes the data by origin chain and timestamp.

## 2. Data sources

The calculation relies on several key data sources:

- **Bridge contract events**: Parsed smart contract events from Hop L1 and L2 bridge contracts deployed across Ethereum, Polygon, Arbitrum, Optimism, and Base networks
- **L1 bridge events**: `TransferSentToL2` events from Ethereum L1Bridge contracts for 11 different tokens (USDC, DAI, ETH, MATIC, USDT, WBTC, HOP, MAGIC, RETH, SNX, SUSD)
- **L2 bridge events**: `TransferSent` events from L2Bridge contracts across Polygon, Arbitrum, Optimism, and Base for various token subsets
- **Chain metadata**: Static mapping configuration linking numeric chain IDs to human-readable chain names for routing information
- **End-of-day price feeds**: Token price data for USD conversion of transfer amounts
- **Token metadata**: Decimal place information for proper token amount calculations

## 3. Step-by-step calculation

### Component A: Bridge transfer data extraction
- **Purpose**: Extract all cross-chain bridge transfer events from Hop bridge contracts across supported networks
- **Logic**: Parse blockchain events from specific Hop bridge contract addresses on each supported chain. For L1 transfers from Ethereum, collect `TransferSentToL2` events from token-specific L1Bridge contracts. For L2 transfers, collect `TransferSent` events from L2Bridge contracts on Polygon, Arbitrum, Optimism, and Base. Extract key fields including block timestamp, transaction hash, log index, contract address, recipient address, destination chain ID, transfer amount, and bonder fee amount. Apply chain-specific logic where L2 events include bonder fees while L1 events do not.
- **Key fields**: `block_timestamp` for timing, `transaction_hash` and `log_index` for unique identification, `address` as the bridge contract address, `recipient` as the destination user address, `chainId` for routing information, `amount` as the transfer value, and `bonderFee` for L2 transactions

### Component B: Chain ID resolution and data enrichment
- **Purpose**: Convert numeric chain IDs to human-readable chain names and enrich transfer data with routing information
- **Logic**: Join the raw transfer events with a static chain ID mapping table that translates numeric identifiers like '1', '137', '42161' to chain names like 'ethereum', 'polygon', 'arbitrum'. This mapping enables proper categorization of transfer destinations and supports cross-chain routing analysis.
- **Key fields**: `chain_id` as the numeric identifier, `chain` as the human-readable name, `origin_chain` indicating the source blockchain, `destination_chain` indicating the target blockchain

### Component C: Volume aggregation and categorization
- **Purpose**: Aggregate raw transfer amounts by time period and categorize transfers for metric standardization
- **Logic**: Group transfer events by daily time boundaries using timestamp truncation to day level. Organize transfers by origin chain to show which blockchain initiated each bridge transaction. Apply standard categorization labels with 'bridges' as the market sector identifier and 'mint_and_burn' as the business segment identifier, reflecting the bridge's token minting and burning mechanics across chains. Sum transfer amounts while preserving token address granularity for proper USD conversion.
- **Key fields**: `timestamp` truncated to daily boundaries, `chain_id` representing the origin chain, `token_address` for price lookup, `transfer_volume` as the aggregated transfer amount

### Component D: USD conversion and decimal correction
- **Purpose**: Convert all transfer amounts from native token units to USD values with proper decimal place handling
- **Logic**: Apply the `convert_to_usd_and_correct_decimals` macro which performs two critical transformations. First, correct for token decimal places by dividing raw blockchain amounts by the appropriate power of 10 (e.g., dividing USDC amounts by 10^6 to get actual dollar values). Second, multiply the decimal-corrected amounts by end-of-day USD prices for each token to achieve standardized USD values. This process handles tokens with varying decimal places (6 for USDC, 18 for ETH, etc.) and ensures accurate value representation.
- **Key fields**: `transfer_volume` as the corrected and USD-converted amount, maintaining timestamp and chain dimensions

### Final aggregation
- **Combining components**: The processed transfer volumes flow through a finalization macro that validates the data structure, ensures schema compliance, and applies gap-filling logic
- **Currency conversion**: All amounts are converted to USD using end-of-day price feeds with automatic decimal place corrections applied per token type
- **Time aggregation**: Daily boundaries are maintained throughout with timestamp truncation ensuring consistent daily reporting periods
- **Final calculation**: The final metric represents the sum of all USD-equivalent transfer volumes that occurred through Hop bridge contracts on each origin chain per day. Chain availability filtering is applied as a final step to ensure only supported chains are included in the output, with zero-filling applied for days with no transfer activity to maintain consistent time series data.

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

Total value of assets moved across chains through a bridge.

Hop ProtocolHOP

Transfer volume

Transfer volume

Competitive landscape

Chain breakdown