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DeFi and Ethereum Captivate $ 2 billion worth of Bitcoin

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DeFi and Ethereum Captivate $ 2 billion worth of Bitcoin

The equivalent of $ 2 billion in bitcoin was used as a token for use on the Ethereum blockchain and hosted DeFi protocol. Bitcoin holders are a way to increase their cryptocurrency while waiting for the price to go up.

In the past few months, Bitcoin’s commitment to the Ethereum blockchain and decentralized financial protocol has never diminished. In mid-September, for example, Curve Finance or Aave were granted token access to Bitcoin in the amount of 1.05 billion US dollars to access these services and generate passive income.

Earlier this month, the amount exceeded $ 1.5 billion, of which $ 1 billion was achieved through the WBTC Agreement (WBTC) alone. And the growth continues. There are currently 150,049 bitcoins on Ethereum, which is roughly 4.32% of the total market value of Ethereum, or $ 2.021 billion.

DeFi and Ethereum Sourcing Synthetic Bitcoin Worth $ 1.5 Billion Through Packaged BTC

In order to have tokens compatible with Ethereum, users still prefer packaged BTC. This tokenization service alone accounts for almost 80% of the bitcoins available on the blockchain. This is equivalent to $ 1.5 billion.

The interest in converting Bitcoin this way is simple: visit DeFi. Despite the ambitions of competing blockchains, Ethereum is still vital in this ecosystem. According to the DappRadar indicator, Ethereum accounts for 96% of the total transaction volume.

Therefore, DeFi is an effective way for long-term Bitcoin holders to monetize their currency before reselling the potential capital gains from Bitcoin (safe haven). Services like Uniswap also offer passive income in return for providing liquidity.

Bitcoin Seeks Return, But Risky

The loan agreement also offers the opportunity to earn interest income. If the DeFi bubble weakens through its smart contracts, it will continue to maintain a cryptocurrency value of around $ 11 billion. However, the high volatility of some DeFi agreements makes it a risky investment.

In addition, major DeFi indices, including Binance’s DeFi Composite Index, fell in October. As Cointelegraph pointed out, the decentralized financial bubble continues to shrink.

This trend is particularly evident at the beginning of the month. According to Santiment, the total daily volume of DeFi token transactions therefore decreased by 30%. The most popular agreements (Sushi, UNI and YFI) showed heavy losses, with losses of 30% to 50% per week. Santiment then spoke of “battles”.

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