There are almost 73,000 synthetic Bitcoin tokens worth around $750 million circulating on the Ethereum

According to Dune Analytics, the number of Bitcoin in circulation on Ethereum has increased to exceed 70,000. The latest statistics show 72,944 synthetic BTC tokens now exist on the DeFi spawning platform. That implies that around $ 750 million worth of Bitcoin is doing rounds on Ethereum.

Tokenized BTC on Ethereum has increased exponentially

Wrapped BTC (WBTC) and RenBTC have the lion’s share of the Bitcoin market on Ethereum with circulations clocking around 47,000 WBTC and 17,000 RenBTC tokens.

According to analyst Elias Simos, in June this year, there were just around 5550 synthetic BTC tokens, worth $ 53 million. The Bitcoin supply on Ethereum was only 0.02%. More than two months down the line, BTC tokens circulating on Ethereum has jumped 1215 percent with the total Bitcoin supply appreciating almost 1300%.

There are a total of seven BTC projects that are actively operating on the Ethereum blockchain. Slowly and gradually, the second-most popular public blockchain platform is turning out to be a dominant off-chain transactional layer for BTC. But why?

Why is Bitcoin (tokenized) on Ethereum gaining popularity?

BTC has become a hugely popular store of value. But compared to other blockchain applications, BTC’s use of case other than the investment aspect is a bit too limited. Also, there was a crying need to make Bitcoin available on other decentralized networks.

Ethereum was the most logical choice for the same. The availability of BTC on Ethereum would expand Bitcoin’s network utility and also its purpose from a ‘peer-to-peer electronic cash system’ to a ‘peer-to-peer electronic finance system’ due to the growth of the DeFi ecosystem on Ethereum.

Bitcoin’s essential features, such as security, fungibility, pseudo-anonymity, etc., would remain conserved with the added benefits of Ethereum’s development ecosystem.

The broader objective for cryptocurrency systems, especially Bitcoin, is adoption. Many think that the growth of BTC on the Ethereum ecosystem will contribute to the cause significantly.

You can see the BTC price here.

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