According to statistics, the majority of the global population that is into crypto are only conversant with leading digital asset, Bitcoin with just a small amount of them knowing about Ethereum. Ethereum is the second-largest digital asset according to market capitalization after Bitcoin. It is a decentralized, open-sourced Blockchain that enables smart contract functionality.
Per the survey carried out, Ethereum Blockchain serves as the platform for over 260,000 different cryptos which includes 47 from the top 100 according to market cap. Presently, Ethereum is trading around the $230 mark with the price expected to witness a rapid rise in the coming days.Â
What is the meaning of Bitcoin on Ethereum Blockchain?
Regarding the open-source feature on the Ethereum Blockchain which allows the Ethereum Blockchain to host other coins, there has been the emergence of tokenized Bitcoin on the Ethereum Blockchain. Presently, the list of tokenized Bitcoin on the Ethereum Blockchain is WBTC, renBTC, sBTC, imBTC, and some others. Looking at the conversion rate, one regular BTC is equal to one tokenized BTC which means one Bitcoin can be converted to one tokenized BTC and vice versa.
Presently, the total number of Bitcoin on the Ethereum Blockchain has now exceeded above the $100 million altogether with WBTC witnessing over six-folds growth since last year. According to statistics from a data analysis website, the Blockchain witnessed around 8,200 BTC conversion in the last month which is equal to about $74 million.
Why are developers planning for tokenized Bitcoin?
Since the inception of the Ethereum Blockchain, developers have flocked over to exploit the network owing to the open-source tech and the smart contract functionality. Developers have been able to create more tokenized bitcoins because of the growth of DeFi applications across the Ethereum Blockchain. Since the Bitcoin Blockchain cannot allow Ethereum holders to lend their assets and receive yields in return, users have started to use the tokenized Bitcoin to go about their business thereby growing the DeFi market.
Why is the recent tokenized BTC surge making the headlines?
Asides the total number of WBTC that has been exchanged on the Blockchain making an all-time high since the past years. The number of locked WBTC has shown a tremendous increase, also beating the all-time high record. RenBTC currently holds the second position with a little over 1,000 tokens on the Ethereum Blockchain which is worth roughly around $9.9 million. The third, fourth, and fifth are HBTC, imBTC, and sBTC with a value of 710 ($6.45 million), 608 ($5.53 million), and 512 ($4.65 million) tokenized Bitcoin, respectively.
In conclusion, the tokenized Bitcoin has witnessed so much patronage as a result of the fact that the Ethereum Blockchain favors their smart contract functions. With developers creating more tokenized Bitcoins, adoption is set to make a further surge.