Crypto bridges have become essential tools in the blockchain ecosystem. Bridges allow users to transfer digital assets between different networks.
As of early 2025, over $22 billion is locked in cross-chain bridges, with over 500 million cross-chain transactions completed and a daily bridge volume exceeding $1 billion.
With over 100 active crypto bridges, each offering unique features and security measures, these tools are now a significant element of crypto markets. Understanding why they exist in the first place is important.
In this article, we’ll explain how crypto bridges work, their benefits and risks, and the best options available today.
Why bridge cryptocurrencies?
Let’s say you own Bitcoin. Decentralized apps on different chains like CoreDAO and Ethereum offer an annual yield for crypto lending. To take advantage of earning a passive yield on your Bitcoin or any other digital asset, a crypto bridge acts as a translator, allowing tokens and data to transfer between networks.
Another reason for bridging is to benefit from lower gas fees. Ethereum transaction fees are higher than ETH Layer-2 chains (like Base). Those who wish to transact in Ethereum and benefit from lower fees may consider bridging their ETH to Base.
Blockchain bridges technical breakdown
When you send a token through a blockchain bridge, the bridge locks your original token on the first blockchain and creates a new version on the second blockchain.
This means you’re not actually moving the original token; you’re receiving a copy on the new chain (some chains will create a new token (mint) for you or release an existing copy. In the case of Bitcoin, in many cases, you will receive WBTC on the new chain (CoreDAO is one of the few chains that mints Bitcoin on-chain rather than wrapped BTC).
To convert the WBTC to BTC on the Bitcoin network, you will use the bridge again.
Some crypto bridges use smart contracts to automate this process, while others rely on intermediaries. CoreDAO is one of the few chains that mints Bitcoin on-chain rather than wrapped BTC.
The goal is the same: seamless movement of assets across chains, making crypto more connected and usable.
What is bridging used for in crypto?
Crypto bridging expands what you can do with digital assets 一 letting you use tokens on multiple blockchains without being limited to one network.
Bridges give you more flexibility and control over your assets.
For example, if you hold Ethereum-based tokens like a stablecoin but want to use a dApp on Solana, a crypto bridge will let you move your assets there.
One key use is accessing lower fees and faster transactions.
Some blockchains are expensive and slow, while others offer cheaper and quicker processing. A cross-chain bridge lets you move assets to a network that suits your needs.
Bridging also unlocks new DeFi opportunities. Many lending platforms, yield farms, and staking pools exist on different chains. With a blockchain bridge, you can transfer your assets for better rewards.
Another major use is NFT transfers. Some NFTs are tied to specific chains, but bridges help move them across ecosystems.
Lastly, bridging enables cross-chain communication, allowing apps on different networks to interact and making crypto more flexible and interconnected.
Bridging does have some issues. For example, some bridges require multiple validator confirmations, which can cause frustrating delays in fast transactions.
However, these software protocols are crucial for blockchain interoperability, enabling networks to work together.
Crypto bridges benefits
- You’re not stuck using a single network. A cross-chain bridge lets you use Ethereum-based tokens on BNB Chain or vice versa. When using a bridge, you can send USDC from Ethereum to Arbitrum for lower fees.
- Some blockchains have high gas fees, making small transactions costly. Moving assets to a cheaper network saves money. For example, bridging ETH from Ethereum to Optimism significantly reduces gas fees.
- Crypto projects benefit from bridges by attracting users from multiple blockchains. This increases adoption and usability.
- Bridging makes it easier to accept payments in different cryptocurrencies across chains. This benefits merchants and businesses.
- Some blockchains offer better staking or farming rewards. Bridges lets users shift funds so they can maximize their returns.
- Some dApps work on multiple blockchains but need bridges for compatibility. This enhances functionality across ecosystems. Lending dApps are using cross-chain messaging to allow users to interact with mutiple chains.
Crypto bridges risks
- Many blockchain bridges rely on smart contracts, which can have coding flaws. Hackers exploit these weaknesses to drain funds. In 2022, hackers exploited a bug in the Wormhole bridge, stealing over $320 million from Ethereum users (all funds were restored)
- Some bridges are controlled by a small group of validators or a single entity, which creates a central point of failure. The Harmony Horizon bridge was hacked for $100 million because attackers compromised the validator keys.
- Bad actors create fake bridges to trick users into depositing funds. These funds are then stolen, and there is no way to recover them. A fraudulent Binance Smart Chain bridge appeared in 2021, tricking users into sending their tokens to a scam wallet.
- Some bridges experience bugs or downtime, causing transactions to fail. If assets get stuck, recovering them can be difficult. n 2023, the Synapse bridge had a temporary issue that locked users’ assets for days.
- Wrapped versions of tokens on other chains don’t always hold their intended value. If the bridge backing them fails, they can become worthless. After the Multichain bridge collapsed in 2023, its bridged assets on Fantom and other chains lost value overnight.
- Some bridges lack the liquidity to process large withdrawals. This can trap users’ funds until more liquidity is added. Stargate tackled this by launching Hydra with Stargate V2, enabling unified liquidity across multiple blockchain networks.
Crypto bridge fee breakdown
Using a crypto bridge isn’t free. Fees vary based on the bridge, the blockchains involved, and network congestion.
Some bridges charge a fixed fee, while others take a percentage of the transferred amount. Gas fees also apply since every transaction interacts with the blockchain.
Before bridging assets, always check the total estimated fees and time. Transactions that are carried via on-chain bridges are irreversible, so always double-check details before proceeding.
| Bridge fee type | Description |
| Gas fees | The cost of processing transactions on the blockchain. Varies based on network congestion. |
| Bridge service fees | Some bridges charge a fixed or percentage-based fee for using their service. |
| Slippage costs | If prices fluctuate while bridging, the received amount may be lower than expected. |
| Wrapped token fees | Some bridges convert tokens into a wrapped version, which may have associated minting or redemption fees. |
| Liquidity provider fees | Bridges using liquidity pools may charge fees to compensate liquidity providers. |
Omnichains bridging
When a project decides to launch a token, some may consider a highly liquid chain or take the risk on a new, emerging chain that may have firm liquidity growth in the future.
Omnichain tokens can be used without fragmenting the liquidity. Some known blockchain bridges, such as LayerZero, allow projects to issue omnichain tokens to over 80 different chains.
LayerZero WeETH is pegged to ETH and considered a yield-bearing digital asset (ETH restaking token). It is available in more than 6 different chains. In essence, rather than limiting WeETH to the Ethereum network, thanks to LayerZero, it can be used across multiple chains.
Best crypto bridges
Crypto bridges let users move assets across different blockchains. But not all bridges are equal.
A reliable bridge should have strong security measures, deep liquidity, and seamless integration with major blockchain networks. Some bridges specialize in speed, while others prioritize security or low fees.
The best options combine all three while maintaining a smooth user experience. Below are three of our favorite blockchain bridges currently regarding how effective and trustworthy they are.
Squid Router
Squid Router is a cross-chain swap and liquidity routing protocol built on the Axelar Network, a decentralized interoperability network.
It enables users to swap tokens across different blockchains without relying on wrapped assets. Instead of manually bridging tokens, Squid automates the process, ensuring efficient and secure transfers.
Squid supports multiple chains, including Ethereum, Avalanche, and Cosmos, and integrates with various decentralized exchanges (DEXs) to offer competitive swap rates.
This makes it a top choice for users who want a seamless, decentralized experience while avoiding the security risks of traditional bridges.
Stargate Finance
Stargate Finance is a liquidity-based bridge designed for instant cross-chain transfers.
Stargate allows direct asset movement without fragmentation, unlike conventional blockchain bridges, which often require users to wrap tokens.
This means a user transferring USDC from Ethereum to BNB Chain will receive native USDC, not a wrapped version.
Its deep liquidity pools ensure minimal slippage and low transaction costs, making it ideal for traders and DeFi users.
Since Stargate is built on top of LayerZero, a cross-chain messaging protocol, it enhances security by reducing the attack vectors common in other bridge designs.
Synapse Protocol
Synapse Protocol is another top-tier cross-chain bridge known for its flexibility and strong security.
It supports multiple blockchains, including Ethereum, BNB Chain, Polygon, and Optimism, allowing users to transfer assets quickly and securely.
What sets Synapse apart is its focus on generalized messaging, meaning it can facilitate not just asset transfers but also smart contract interactions across chains.
This makes it a powerful tool for developers and DeFi projects looking for seamless interoperability.
Alternative to on-chain blockchain bridges
On-chain crypto bridges aren’t the only way to move assets between blockchains.
While on-chain bridges offer direct transfers, they come with risks like smart contract vulnerabilities and liquidity limitations.
This is where off-chain alternatives step in, providing a different way to swap assets across networks without relying on blockchain-based bridge mechanisms.
These platforms offer cross-chain asset transfers without requiring users to interact with smart contracts directly.
These services are often faster, simpler, and safer for those unfamiliar with DeFi tools..
ChangeNOW: A non-custodial crypto swap
ChangeNOW is a non-custodial crypto swap service that enables instant cross-chain exchanges without requiring accounts or deposits. KYC is not required for small amounts but they do check for any illicit transactions.
Unlike blockchain bridges, ChangeNOW doesn’t lock up assets in a smart contract – it simply swaps them at the best available rate.
With support for over 1,000 cryptocurrencies and over 1 million exchange pairs across multiple blockchains, it allows users to move assets freely between networks in a straightforward process.
Since ChangeNOW doesn’t store funds, it reduces the security risks tied to bridge hacks, making it an excellent choice for users prioritizing safety and ease of use.
Moonpay: Licensed crypto swaps
Moonpay simplifies crypto access by offering fiat-to-crypto and crypto-to-crypto swaps without complex blockchain interactions. It is registered and regulated in multiple jurisdictions, including the United Kingdom (FCA license), Ireland, Italy, Canada, Australia, and other countries.
Moonpay is also registered in most states in the United States, which means the services are available to most U.S. customers.
Unlike traditional bridges, Moonpay focuses on making cross-chain transactions accessible to everyday users through card payments, Apple Pay, and bank transfers.
Its seamless user experience makes it ideal for those looking to convert assets between chains without navigating decentralized exchanges or liquidity pools. Buying and selling cryptocurrencies can also be carried via Moonpay.
By integrating with major wallets and platforms, Moonpay offers a secure, beginner-friendly alternative to crypto bridges.
Summary
Crypto bridges have grown into a multi-billion-dollar industry, facilitating the most cross-chain activity.
The top 10 bridges handle over 80% of all cross-chain transfers, showing how a few key platforms dominate the space.
However, security remains a challenge, with over $2.5 billion lost in crypto bridge hacks from 2021 to 2024. Regulators are also increasing scrutiny due to concerns over money laundering and illicit transactions.
Despite these risks, innovation is thriving. New solutions like modular blockchain bridges, ZK-proof bridges, and cross-chain liquidity protocols improve security and efficiency.
As the ecosystem evolves, bridging will remain a crucial tool for DeFi users, offering both opportunities and challenges in the ever-growing crypto world.
