There are always debates as to why anyone would need Bitcoin on Ethereum. Those looking to dabble in DEXes and DeFi will see merit in this concept. For everyone else, it will always remain a very odd and roundabout solution.
More Bitcoin on Ethereum
No one can deny there is a fair amount of Bitcoin on Ethereum. This doesn’t mean this amount no longer exists in the Bitcoin ecosystem. Instead, users have willingly tokenized their BTC holdings into Ethereum-based versions for specific products and services. It is an ongoing trend, but one that genuinely exploded in July of 2020.
Contrary to Ethereum, there is no real native decentralized finance ecosystem for Bitcoin. Some may argue that isn’t even necessary, but others strongly feel otherwise. When Ethereum users can earn passive revenue streams, some BTC holders will try to achieve the same. To do so, they need to put their Bitcoin on Ethereum.
To this date, there is over $1.1 billion worth of Bitcoin on Ethereum. A significant amount, as it means nearly 101,000 BTC has been tokenized successfully. It is merely a fraction of the BTC in circulation, but an intriguing development regardless.
Finding the right tokenized version of BTC is a challenge. It is evident that Wrapped Bitcoin, or WBTC, remains the most popular option. This token unlocks many doors in the DeFi world and beyond. Although other tokens exist as well, they lack the major traction that WBTC has achieved.
RenBTC Puts up a Fight
Other than WBTC, renBTC is the only “popular” version of Bitcoin on the Ethereum network. Nearly $220 million worth of BTC resides on the Ethereum network in this form. An impressive amount, although it is less than 33% of the amount of WBTC. Overcoming this gap will be difficult.
As far as the rest is concerned, HTBC, SBTC, imBTC, and pBTC are all trying to find their niche. TBTC has not had any notable success yet, according to BTConEthereum. It is a statistic that will likely change in the future, though. It all comes down to DeFi platforms integrating these tokenized versions of Bitcoin on Ethereum.
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