Definition
Bridge liquidity is the pool of value, typically in the form of cryptoassets, that is allocated to a cross-chain bridge to support the issuance, redemption, and balancing of bridged representations across multiple networks. It denotes the depth and distribution of assets that counterparties, relayers, or liquidity providers commit to a bridging mechanism, constraining the scale, pricing, and reliability of cross-chain value transfer at any given time.
In Simple Terms
Bridge liquidity is the amount of crypto held and committed to a bridge so that assets can be moved between blockchains. It represents the funds that are available on each side of the bridge, limiting how much value can be transferred and how smoothly those transfers can be settled across different networks.
Context and Usage
The term bridge liquidity is used when assessing the capacity, robustness, and risk profile of cross-chain connectivity. It appears in discussions of bridge design, capital efficiency, and exposure to bridge attacks, as well as in analyses of how interoperability infrastructure interacts with MEV dynamics and oracle-based validation. Researchers and practitioners reference bridge liquidity when quantifying fragmentation of assets across chains and evaluating systemic dependencies on specific bridges.