As per the latest data aggregated by Dune Analytics, the total number of Bitcoins (BTCs) transformed into Ethereum ERC-20 tokens have now surpassed $1.2 billion – breaking the record for the most Bitcoin moved to the Ethereum network by over 100%. More than 0.5% of the total BTC market cap currently resides in Ethereum, equating to up to 3% of the network’s total market cap.
What makes this development that more impressive is the fact that just over a week ago, the recorded figure was only half of what it is today – from an already impressive $500 million to a now staggering $1.2 billion.
Although there may be several reasons people would choose to port ridiculous numbers of BTCs towards Ethereum, experts believe that most are driven by the desire to capitalize on the current decentralized finance (DeFi) trend. On top of having the chance to fully explore the offers of the white-hot sector – such as its non-custodial lending projects – Bitcoin players may also enjoy services that are generally not available in their home network. This includes yield-generation and crypto-lending, which are currently taking the DeFi space by storm.
As it currently stands, the Bitcoin blockchain is not compatible with that of Ethereum’s. That being said, what BTC holders do to move their assets to the rival network is to stake their BTCs into particular protocols to gain synthetic BTCs based within Ethereum itself. People are basically turning standard BTCs into ERC-20 tokens, which are highly predominant in the Ethereum network.
Popular choices for said tokens are wBTC, renBTC, and tBTC. Speaking of the wBTC, it is worth noting that over 15,000 tokens of its kind have been minted within just a day following Uniswap’s – the most popular DeFi protocol – native token launch. Needless to say, this development played a massive role in attaining the stated record number of $1.2 billion worth of BTC in Ethereum. Considering that Uniswap and DeFi are still on an upward surge as of late, it wouldn’t surprise anyone if these already-noteworthy numbers continue to rise even more.