On 31st October, Dune Analytic reported a significant rise of above $2Billion worth of Bitcoin on the Ethereum network. At the same time, there was an increase in the migration of BTC to Ethereum’s blockchain. Migrating bitcoins on Ethereum is one of the most significant opportunities for decentralized financial growth.
Further, Dune Analytics announced a 21 million max supply for bitcoin, Ethereum-based bitcoin, accounts for approximately 0.7%. These 150,049 bitcoins are equal to 4.7% of the market cap of Ethereum. It is by far the largest number Bitcoin has migrated over to the Ethereum blockchain. Recently the figure was less than half what it is today; it was around $500 million.
Assembling Powerful Merges
Bitcoin and Ethereum have always been independent networks. Though a significant pillar of blockchain, interoperability enables developers and users to access different systems’ varying functionalities without compromising both networks’ integrity. Bitcoin brought decentralization to the world. Consequently, Ethereum formed a development platform for decentralized applications and smart contracts. Merging the features of the two blockchains is the only way the decentralized ledger technology.
One would question Bitcoin and Ethereum being similar in many aspects. It is essential to note that a number of networks are indeed synthetic portrayals of Bitcoin. Bitcoin has been traded for artificial, Ethereum versions of Bitcoin to be used in ETH protocols.
Embracing the cryptocurrency world
Cryptocurrencies are gaining international acceptance, and controlled markets are now registering crypto products to meet customer demand. For more than a month now, an outflow of investors trading bitcoin to Ethereum blockchain has been realized. There has been a rise from 80,000 BTC, which is equivalent to $1billion, since mid-September. The overall price upsurge of crypto assets occurred at the same time too.
Wrapped Bitcoin(WBTC) has approximately 80% of the market share and a $1.5 billion market cap. Bitcoin users can now lock their bitcoin into smart contracts on Ethereum blockchain in exchange for WBTC.
DeFi protocols (decentralized finance) are rising in the crypto world. Masses can access almost every service rendered by traditional financial institutions through a DeFi platform. It is effortless to lend, borrow, trade, stake, or invest worldwide through these platforms.DeFi interest has also risen significantly, leading to increased bitcoin investment. Over $11 billion DeFi contracts have been sponsored by traders to take part in yield-farming protocols. Users can port Bitcoin over Ethereum to enjoy wide decentralized finance varieties, like non-custodial leading protocols, decentralized exchanges, and synthetic assets. These crypto-leading and yielding-generating services are otherwise unavailable primarily to Bitcoin holders.