- Chain Abstraction is the highest-ranked token standard by growth rate in 2024.
- The token standard grew by 673% between January and August 2024.
- Bitcoin network’s BRC20 decreased by over 72% from January to August.
According to Kaiko AI Research, Chain Abstraction soared 673% between January and August 2024. This remarkable growth makes it the highest-ranked token standard by growth rate among the top four cryptocurrency narratives.
In contrast, BRC20, the blockchain standard of the Bitcoin network, plummeted by over 72% during the same period.
How Chain Abstraction Works
Chain Abstraction is a blockchain standard designed to eliminate the user experience (UX) challenges typically associated with managing multiple blockchains. By simplifying blockchain interactions, it increases the adaptability of blockchain processes with mainstream operations in the emerging Web3 ecosystem.
Kaiko’s report highlights blockchain users’ desire to solve the technology’s persistent challenges, particularly those related to user experience. It also addresses the issues of user fragmentation and liquidity. With Chain Abstraction, Web3 developers can build applications unrestricted by the traditional UX confines of individual chains.
Read also: Account Abstraction Could Bring Billions to Ethereum: Vitalik Buterin
Chain Abstraction’s growth rate between January and August 2024 is especially striking when compared to other crypto narratives. For example, AI, a major narrative this year, grew by just 6.32%, while DeFi saw a 57.06% growth.
The Bitcoin network’s BRC20 token standard lagged behind with a 72% decline. Meanwhile, memecoins, another top narrative, grew by 35.67%.
Behind Chain Abstraction’s Success
Many blockchain analysts attribute Chain Abstraction’s rapid adoption to several factors that benefit blockchain users. These include enhanced interoperability, simplified development, improved user experience, cost efficiency, and scalability.
Chain Abstraction allows users to seamlessly interact across different blockchain networks, enabling them to leverage assets and accounts across multiple blockchains. It also reduces complexity by eliminating the need for manual bridging of assets or managing several balances.
These features are key reasons why blockchain users are drawn to Chain Abstraction, along with several other fundamental benefits that promote the use of blockchain technology. The research demonstrates that this innovative standard plays a significant role in blockchain adoption and the development of the Web3 ecosystem.
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