There Is Nearly 150,000 Bitcoin on Ethereum But Demand Seems to Dwindle

BlocDesk Bitcoin on Ethereum TX Count Mining Difficulty

In the past year, there has been a lot of talk about tokenizing Bitcoin on Ethereum. Several of these “wrapped” tokens exist today. There are nearly 141,000 BTC on Ethereum, although these figures are a bit more complex to interpret. 

Bitcoin on Ethereum Starts to Decline

Following the recent price surge for Bitcoin, there appears to be less interest in tokenizing BTC on Ethereum. An understandable development, as Bitcoin keeps setting new all-time highs this week. Keeping the funds locked on the Ethereum blockchain may not serve any real purpose at that time. Exploring DeFi options is one thing, but taking unnecessary risks is never smart. 

Keeping that in mind, it isn’t surprising to see the amount of Bitcoin on Ethereum decline. It is a minute difference, but the chart depicts a downward angle lately. This coincides with the bullish Bitcoin momentum. Moreover, it seems to impact all tokenized versions of BTC at the same time. 

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BlocDesk Bitcoin on Ethereum Volume
Source: Dune Analytics

More specifically, there is still nearly 141,000 Bitcoin on Ethereum. It represents 4.11% of the current Ethereum market cap or 0.662% of the maximum Bitcoin supply.  Not the most impressive numbers, but still a significant talking point. There is something odd about seeing people recreate Bitcoin on Ethereum, especially as Bitcoin’s chain has DeFi opportunities. 

That said, it will be interesting to see what happens to tokenized BTC on Ethereum. The DeFi ecosystem is still going strong, but also primarily due to Wrapped Bitcoin. Without that asset, DeFi’s TVL on Ethereum would be a lot lower. This synergy between the two ecosystems is intriguing to behold but doesn’t seem to favor the world’s leading cryptocurrency all that much. 

A Decline Across the Board

Speaking of Wrapped Bitcoin, it still represents 80.4% of all tokenized Bitcoin on Ethereum. A significant market share that has proven difficult to disrupt. Currently, there are at least eight different versions of tokenized BTC on Ethereum. Some are less popular compared to others. 

Current rankings put renBTC in second place, ahead of HBTC, which is Huobi Bitcoin. There is also tBTC, imBTC, pBTC, and sBTC to take into account. All of these different DeFi ecosystems need their own wrapped version of Bitcoin on Ethereum. It creates a fragmented industry rather than a unified one. 

BlocDesk BTC ETH Decline
Source: Dune Analytics

All of these assets appear to note a decline in demand lately. Statistics above indicate some versions report a smaller decrease than others, which is expected. It may be a matter of time until there is over 150,000 BTC on Ethereum once again. However, if BTC remains bullish and Ethereum doesn’t follow suit, anything can happen.