According to a Coindesk report, approximately $60 million in Bitcoin was moved to the Ethereum blockchain in June. In July, Ethereum received over $225 million tokenized Bitcoins, achieving a new all-time-high (ATH).
Ethereum’s ERC-20 protocols are being used to move Bitcoin to the Ethereum blockchain, by tokenizing the king coin. As the most popular altcoin, Ethereum – and its blockchain – became the easy choice for Wrapped Bitcoin (WBTC), essentially Bitcoin on the Ethereum blockchain.
With a majority of (WBTC) driving ERC-20 protocols, the wrapped Bitcoins have grown to own 76% market share. WBTC is backed by Bitcoin’s current value. As Bitcoin’s value rises, so does it.
WBTC was launched just last year. It was created to make the much older Bitcoin protocol more compatible with that of Ethereum. In addition to this, WBTC also helps retain and even improve Bitcoin’s liquidity.
WBTC is regulated by the Decentralised Autonomous Organisation (DAO). DAO audits both Ethereum and Bitcoin platforms to ensure integrity.
Apart from WBTC, other Bitcoin backed ERC-20 tokens include imBTC and renBTC.
All of the improvement and increases are quite advantageous for the DeFi sector. Last week, the DeFi sector’s total value crossed over $4 billion as more Bitcoins are being stored on the Ethereum blockchain. Regardless, Ethereum cofounder Vitalik Buterin thinks it’s all “flashy stuff”.
Image Credits: Pixabay
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