$180M in Bitcoin Locked in Ethereum, 80% WBTC

Editor's Note: This article comes fromBabbitt Information (ID: bitcoin8btc)Editor's Note: This article comes from

Babbitt Information (ID: bitcoin8btc)

Babbitt Information (ID: bitcoin8btc)

, by Alexander Behrens, translated by Wendy, published with permission.

Bitcoin may be the ancestor of cryptocurrencies, but it also lives in the world of Ethereum today.

Since the end of June, the emergence of Bitcoin locked in Ethereum has grown rapidly, surpassing $100 million. This shows that Ethereum is becoming a dominant force in the decentralized finance space as DeFi applications and yield farmers looking for more liquidity to increase yields drive demand.

Cryptocurrency research firm Glassnode noted in its second-quarter report:

“There is a huge effort across the industry to create a connection between Bitcoin and DeFi, especially Ethereum. As of July 20th, 15,800 Bitcoins (0.1% of circulating supply) were in Ethereum.” The Times Today, this number has grown substantially.

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(Bitcoin-pegged assets on Ethereum)

Nearly 80% of the bitcoin currently locked on the Ethereum blockchain is WBTC. WBTC is jointly developed by multiple partners, including several well-known DeFi protocols, such as Kyber Network, Maker, Uniswap, etc. WBTC uses a trusted third-party escrow system to lock and distribute bitcoin locked on the Ethereum blockchain.

Earlier this year, WBTC became the collateral asset for DAI lending and now accounts for more than 8% of the platform’s backed lending assets, worth about $20 million. The amount of Bitcoin locked in the form of WBTC on Ethereum has increased by more than 12 times since May, driven by demand for Bitcoin from Ethereum DeFi applications.