Chainlink CCIP Gains $3 bn TVL as Kraken, Solv and Others Switch from

Chainlink’s Cross‑Chain Interoperability Protocol (CCIP) has attracted more than $3 billion in total value locked (TVL) since the April Kelp DAO exploit, as major players such as Kraken, Solv Protocol and Re migrate away from LayerZero in search of “enterprise‑grade” security【1】.

Major migrations to CCIP

Kraken announced Thursday that it is deprecating LayerZero and will use CCIP exclusively for its Kraken Wrapped Bitcoin (kBTC) and future wrapped tokens, citing the protocol’s “strict security and risk management requirements” including 16 independent nodes and native rate limits【1】. Solv Protocol followed suit, shifting its $700 million tokenized Bitcoin portfolio (SolvBTC and xSolvBTC) to CCIP and ending LayerZero support on four networks【2】. The on‑chain reinsurance protocol Re also moved $475 million of TVL to CCIP【1】. Collectively, these moves represent more than $3 billion of assets now secured by Chainlink’s infrastructure, a sharp contrast to the $9 billion in assets that had traversed LayerZero before the exploit was disclosed【1】.

Competitive picture and market reaction

LayerZero’s reputation suffered after the Kelp DAO exploit in April, which saw roughly $292 million in liquid restaking tokens stolen, prompting a wave of migrations away from its single‑DVN design【1】. While LayerZero’s native token ZRO has fallen more than 30 % since the hack and sits over 80 % below its 2024 high, Chainlink’s own token LINK remains flat around $10, still 80 % below its 2021 peak, indicating that the migration is driven by protocol choice rather than immediate price impact【1】. Lido, the world’s largest Ethereum liquid‑staking protocol, has also adopted CCIP, reinforcing the perception of Chainlink as the emerging standard for cross‑chain bridges【1】.

What to watch

• LayerZero token ZRO – further price pressure could signal continued loss of confidence.
• Chainlink’s CCIP adoption milestones – any new protocol announcing a migration (e.g., additional $100 m+ TVL) will reinforce the trend.
• Regulatory scrutiny of cross‑chain bridges – statements from U.S. officials labeling CCIP as “critical digital asset infrastructure” could affect future institutional uptake.

The rapid shift to Chainlink’s CCIP underscores a broader industry move toward higher‑security bridge solutions after high‑profile exploits, but the long‑term dominance of any single cross‑chain provider remains uncertain as both security standards and market dynamics evolve.