Cryptocurrency Transfers: The Wrong Network Choice Can Be Permanent

The wrong network choice when sending cryptocurrency can result in permanent loss of funds. An exchange may execute a withdrawal correctly, but if the recipient's address is on an unsuitable chain, the balance will not arrive at its destination.

A recent analysis found that 51 out of 100 largest crypto assets by market capitalization exist on two or more blockchains simultaneously, with 22 of them recorded on five or more chains. This means that when sending these assets, the network selector in the withdrawal form is not a detail, but rather the decision over whether the money arrives.

The analysis used data from CoinGecko and found that Ethereum appears most often as the host chain, followed by BNB Smart Chain, Solana, Arbitrum, and Base. However, it's essential to note that the number of chains a token exists on does not necessarily reflect the networks an exchange offers for withdrawing that asset.

Chainlink leads the field with contract entries on 87 different chains, followed by USDC with 34 and Ethereum USDe with 30. Stablecoins like Tether and USDC are moved most often and have balances on multiple chains. The same name can exist on many issues, each with its own balance.