Squid Protocol Connects Solana to Wider Crypto Ecosystem Through Chainflip Integration

Squid Protocol integrates Solana, enhancing cross-chain connectivity with Cosmos, PolkaDot, and Bitcoin.

Published: Dec 20, 2024 at 17:00
Edited: Dec 20, 2024 at 15:36

Squid Protocol, a popular cross-chain bridge connecting over 78 EVM and Cosmos-based networks, has announced its expansion to Solana through Chainflip, a cross-chain AMM.

The integration enables a greater flow of liquidity between Solana and the Cosmos ecosystem. Before Squid Protocol’s expansion, transferring funds permissionlessly between these sectors was complex, relying on centralized parties or several platforms.

Beyond the Cosmos Ecosystem, the integration also breaks down barriers between the PolkaDot and Bitcoin networks, improving Solana interoperability across the industry.

Squid Protocol Integrates Solana

On December 19, Squid Protocol announced its integration with Chainflip, a cross-chain AMM servicing the Solana, Bitcoin, Ethereum, and PolkaDot networks.

Incorporating ChainFlip into its existing product, Squid Protocol brings an additional layer of connectivity and liquidity flow to Solana and unites all permissionless routes in one application.

For example, funds can now be transferred from Cosmos-based chains like Celestia and Injective to Squid Protocol through the Axelar and Cosmos IBC, then rerouted through Chainflip to Solana. Previously, this path would require several different applications, but Squid Protocol has now united the entire route in one click.

New Bridge Opens Billions in Cosmos TVL

Squid Protocol’s latest integration opens the door to greater connectivity and liquidity flows between Solana and the expansive Cosmos ecosystem.

Home to popular networks like Cronos chain, Thorchain, and dYdX, the Cosmos Ecosystem now commands over $2B in TVL based on DeFiLlama data.

With Squid Protocol incorporating Solana into its growing network, traders within Cosmos could be tempted to transfer funds across to Solana, which objectively boasts a more vibrant DeFi market based on its higher onchain trading volumes.

Solana Enjoys Consistent Inflows

With Bitcoin reclaiming the $100,000 mark, market participants are demonstrating a higher appetite for risk and returning to Solana’s fabled memecoin economy.

In the last 7 days, Solana witnessed over $300M in token inflows, suggesting traders are flocking to the ecosystem in force.

According to Artemis data, around 88% of Solana’s inflows are coming from Ethereum. This influx of capital could be flowing in anticipation of the launch of Pudgy Penguin’s native memecoin, $PENGU.