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Record Transfer of Bitcoin to Ethereum

In less than a month, 114,889 Bitcoins (BTC) worth $ 1.2 billion were converted into Ethereum-based crypto assets.

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Record Transfer of Bitcoin to Ethereum

In less than a month, 114,889 Bitcoins (BTC) worth $ 1.2 billion were converted into Ethereum-based crypto assets.The amount of Bitcoin converted to Ethereum-based ERC-20 tokens reached the level of $ 1.2 billion, according to data from Dune Analytcis. This means that 0.5% of Bitcoin’s entire market cap is transferred to the Ethereum blockchain network , which equates to 3% of Ethereum’s market cap.

This amount represents the most amount of Bitcoin moved to the Ethereum blockchain network to date. Just a few weeks ago it was just over half the value reached today, just over $ 500 million.

The Bitcoin blockchain is incompatible with the Ethereum blockchain, but by incorporating Bitcoin into certain protocols it is possible to buy Ethereum-based Bitcoin, these are the token standard ERC-20 assets in Ethereum, representing Bitcoin.

Among the most popular options are wBTC, renBtC, and tBTC, a startup project. Briefly, to give an example from wBTC, you give the Bitcoin you have to the company and wBTC is given as much as the amount of BTC you have given. In this way, you have an Ethereum-based crypto asset as much as the value of your Bitcoins.

What is WBTC?

WBTC stands for Wrapped Bitcoin and it is an ERC20 asset representing only Bitcoin. One WBTC is equal to one BTC. BTC can be converted to WBTC and vice versa.

WBTC is an Ethereum token designed to bring more liquidity to DeFi applications. BTC holders can lend their Bitcoins in the form of WBTC and earn interest.
WBTC is managed by a group of organizations working under the DeFi heading to help provide more sophisticated financial services.

Bitcoin is the world’s first, largest, and most widely recognized crypto asset. Since the creation of Bitcoin, the technology behind the revolutionary “peer-to-peer electronic cash system” has remained largely the same. However, innovations continue unabated in the rapidly rising Decentralized Finance. (DeFi) WBTC is trying to bridge both worlds by bringing the value and liquidity of Bitcoin and making it available in the DeFi world.

Being an ERC20 token makes WBTC’s transfer faster than regular Bitcoin, but the main advantage of WBTC is its integration into the world of Ethereum wallets, dapps, and smart contracts.

wBTC is the most popular synthetic Bitcoin on Ethereum; it has 73.6% of the market supply. renBTC has 18.4% and Huobi BTC or hBTC has 4.2%.

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