A while ago, there was a strong influx of tokenized Bitcoin on the Ethereum blockchain. While that growth is still slowing down, the idea remains appealing to plenty of people. Today, there is just over 174,000 Bitcoin on Ethereum, with Wrapped Bitcoin still the undisputed king.
Renewed Interest In Bitcoin On Ethereum
The ongoing growth of decentralized finance continues to astound most cryptocurrency enthusiasts. For projects that primarily cater to Ethereum users, a fair few of them are successful. This is despite absurd network fees to send money, let alone enter and exit trading positions or joining DeFi protocols.
One thing that hasn’t changed much is the overall interest in Bitcoin on Ethereum. More specifically, the demand for tokenizing BTC on this blockchain is picking up again after a few quiet months. A driving factor for this change remains unclear, yet DeFi seems to be a contributing factor.
As the curve heads north again, it remains unclear what type of value can be achieved. Today, there are 174,219 Bitcoin on Ethereum in one capacity or another. It is a fraction of the circulating supply, yet it shows people are willing to explore this option. More importantly, these tokenized assets are fewer BTC on exchanges available for purchase at the current market price.
Statistics by Dune Analytics confirm there is an increase in tokenized BTC trading across decentralized exchanges. A fair few of these assets are not listed on centralized exchanges yet, and Bitcoin holders have to explore other options. Whether that is worth tokenizing Bitcoin on Ethereum is a matter of personal preference.
WBTC Continues To Lead The Pack
As far as tokenizing Bitcoin on Ethereum goes, WBTC remains the most prominent asset. It is one of the few tokenized assets that works across most exchanges, DEXes, and DeFi protocols today. With a market share of 73.1%, it is evident that competing solutions will have a tough time gaining traction.
Further down the rankings, we can see HBTC – tokenized Bitcoin on Ethereum via Huobi – claims second place, ahead of RenBTC. Both of these assets have a market share of over 10%, indicating competition might heat up in the coming months. sBTC, tBTC, imBTC, and pBTC complete the remaining ranks at this time.
All of this shows Bitcoin can benefit from more native decentralized finance solutions. Finding a project that supports the leading cryptocurrency in its normal form – without wrapping or tokenizing it – is incredibly difficult. That situation can change shortly, as some cross-chain protocols are in development. An exciting future lies ahead for Bitcoin and DeFi, assuming developers focus on this aspect.