Investors Have Nearly $1.5 Billion in Bitcoin over Ethereum Blockchain
Ethereum network is now hosting most of the top DeFi projects. Even holders of Bitcoin are also shifting coins to Ethereum blockchain in the form of BTC derivatives such as wBTC.
According to the data shown by crypto analytics firm Dune Analytics, there are almost $1.497 billion in Bitcoin locked over the Ethereum blockchain. It comprises almost 3.6% of the total market cap of the world’s second-largest coin Ethereum.
Wrapped Bitcoin Involves 73% of Market Share
To shift Bitcoin over Ethereum’s blockchain, the world’s leading digital asset first covert into Ethereum-based tokens. These tokens represent Bitcoin, but they are working over Ethereum’s blockchain. The most famous token is known as Wrapped Bitcoin (wBTC), and it constitutes 73% of the total market share. The second-most prominent token is called renBTC, which represents 20% of the market share.
People are investing in DeFi projects via top digital asset Bitcoin. Besides BTC derivatives, there also many protocols, such as decentralized exchanges and decentralized lending protocols, which come under the umbrella of DeFi.
$10.83 Billion in DeFi Smart Contracts
According to the latest reports, DeFi tokens are losing their values, but they are still very popular among investors. The data published by DeFi Pulse shows that the total value locked in DeFi contracts equal to $10.82 billion.
According to an expert, there is a total of $1.5 billion in Ethereum-based Bitcoin, which is “130 times the amount of Bitcoin” present over the Lightning Network. Lightning Network is based on the Bitcoin blockchain, which is developed to make transactions fast.
Investors’ interest in Ethereum shows that they want to lock their Bitcoin on Ethereum’s blockchain rather than Bitcoin’s blockchain.
Over recent months, the interest of investors decreased in decentralized finance. As a result, DeFi coins plunged after losing their values in significant amounts.
However, in the last couple of days, DeFi coins recovered to some extent following Bitcoin and other leading coins. For instance, Band Protocol (BAND) has surged by almost 7% in the previous 24-hours, while it has increased by nearly 15% over last week. Similarly, yearn.finance (YFI) has jumped by 7.68% in the last 24-hours.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
