To be clear, we’re talking about synthetic Bitcoin—Bitcoin that’s been converted into Ethereum-based tokens that represent Bitcoin. The most popular is Wrapped Bitcoin, or wBTC, which holds 73% of the market share. Next up is renBTC, with 20% of the market share.
People are moving lots of Bitcoin to Ethereum to make the most of this summer’s decentralized finance boom. Such products as decentralized lending protocols, non-custodial exchanges and synthetic derivatives—like wBTC—were all the rage this summer. But you have to use Ethereum-based tokens to use them.
And they are still very popular, even after the bull run begins to slow down: Investors have plugged $10.82 billion into DeFi smart contracts, as of today, per metrics site DeFi Pulse. That’s a tenfold increase since the start of June.
Curiously—as one Redditor noted—Ethereum-based Bitcoin’s $1.5 billion figure is about 130 times the amount of Bitcoin locked up in Bitcoin’s Lightning Network, a protocol built atop the Bitcoin blockchain designed to hasten transactions. The Lightning Network is the only Bitcoin-based DeFi protocol listed on DeFi Pulse, which lists all the