- A rising quantity of bitcoin’s circulating provide is being tokenized on Ethereum.
- The most well-liked model is wrapped bitcoin, which accounts for 80% of tokenized bitcoin.
A substantial proportion of Bitcoin’s circulating provide has now been locked as much as be utilized on the Ethereum blockchain.
In line with The Block’s Data Dashboard, 240,000 bitcoin has now been wrapped onto Ethereum. This represents 1.3% of its present circulating provide (and 1.1% of Bitcoin’s eventual whole provide).
The quantity of tokenized bitcoin has elevated by 100,000 BTC because the begin of the 12 months and has been rising at a speedy clip.
The tokenization course of works by locking up an quantity of bitcoin and issuing an equal variety of tokens on Ethereum. The bitcoin-backed tokens are pegged to bitcoin’s value however will also be used on DeFi platforms and in different protocols. To reverse the method, the tokens are destroyed and the bitcoin launched.
The vast majority of the tokens have been become wrapped bitcoin (WBTC). WBTC accounts for 80% of the tokens wrapped onto Ethereum, and these tokens alone signify 1% of Bitcoin’s circulating provide.
Different tokenized variations of bitcoin embrace HBTC, renBTC, imBTC, sBTC and tBTC. HBTC is crypto trade Huobi’s model of tokenized bitcoin. The opposite 4 are run by means of protocols that allow customers to switch to their variations of tokenized bitcoin and again once more.
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