Ethereum
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Almost 1% of all Bitcoin in circulation is now used on Ethereum

One of the biggest focuses of this past year in DeFi has been the rapid rise of Wrapped Bitcoin, tBTC, and other projects that allow investors to deposit their BTC in exchange for an Ethereum-based token representing a claim on that Bitcoin.

While previously seen as a novelty only used by KYC-ed users looking for a faster way to transact Bitcoin, it is becoming clear that this is not the case.

Synthetic Bitcoin count on Ethereum continues its strong uptrend

Ethereum 2.0 researcher at the Ethereum Foundation Justin Drake recently noted that per his data, 0.8 percent of all BTC is now based on Ethereum. There is now 148,000 BTC represented on Ethereum, he noted.

50 days ago, this metric was only at 74,000 BTC. And 23 days before that, there was only 37,000 BTC based on Ethereum.

0.8% of all BTC now on Ethereum. 2x growth (74,000 BTC to 148,000 BTC) in 50 days. https://t.co/6PPcePSifL — Justin Ðrake (@drakefjustin) October 28, 2020

Prominent pseudonymous crypto researcher “Hasu” attributes the growth of WBTC to yield farming.

Due to the DeFi craze of the summer, there were protocols through which BTC holders could basically earn dozens of percent annualized on a hard, appreciating asset such as Bitcoin.

Those opportunities have begun to dry up as DeFi coins have continued to get crushed by a weak Ethereum and a rapidly surging Bitcoin. This may result in a drop in the issuance of WBTC, or even redemptions of WBTC for Bitcoin on the original blockchain. Hasu commented on the matter:

“Wrapped bitcoin follows the yield opportunities. The yields we saw for BTC in Defi have already collapsed a lot, because they were fueled by the retail buyers of tokens like CRV, COMP, UNI, and the countless food tokens. And those buyers are running out.” Wrapped bitcoin follows the yield opportunities. The yields we saw for BTC in Defi have already collapsed a lot, because they were fueled by the retail buyers of tokens like CRV, C...
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