- 114,889 Bitcoins have been converted to Ethereum-based representations of Bitcoin.
- Wrapped BTC dominates the synthetic BTC market.
- This BTC can be used on DeFi protocols, which grow more popular by the day.
The amount of Bitcoin converted into Ethereum-based ERC-20 tokens had hit $1.2 billion, per data from Dune Analytics. This means that 0.5% of all of Bitcoin’s market cap has been ported to the Ethereum blockchain, also equivalent to 3% of Ethereum’s market cap.
This is the most Bitcoin that’s moved over to the Ethereum blockchain to date. Just weeks ago, the figure was less than half what it is today, sitting at just over $500 million.
The Bitcoin blockchain is incompatible with the Ethereum blockchain, but it’s possible to stake Bitcoin in certain protocols and receive synthetic, Ethereum-based Bitcoin. These are ERC-20 tokens—the generic token standard on Ethereum—that represent Bitcoin.
Popular options include wBTC, renBTC and the newly launched tBTC. Some, such as wBTC, are custodial, meaning that you give your Bitcoin to a company and they’ll give you wBTC, also known as Wrapped Bitcoin, in return. Others, such as tBTC, are non-custodial, meaning that you give your Bitcoin to a protocol and the code—not a company—issues you with tBTC.
People might port Bitcoin over to Ethereum to enjoy the full spectrum of Source…