Cryptocurrency traders have been using Bitcoin-based assets tied to alternative blockchains for quite some time. Statistics from mid-May show that today there are more than 299,000 Bitcoin, valued at over $ 12.8 billion, tied to packaged or synthetic Bitcoin projects hosted on Ethereum or the Binance Smart Chain.
Layer 2 and sidechain competitors are valued at $ 251 million in Bitcoin
Secured crypto tokens with underlying assets like fiat currencies or stocks, bonds and commodities have been around for years. In fact, with just fiat currencies alone, the stablecoin market is valued at around $ 97.5 billion today. For the past two years, Bitcoin-linked tokens have been all the rage, and a significant number of secured BTC are now tied to alternative chains.
Bitcoin-linked tokens are hosted on a variety of blockchains, and bitcoins are also used in the Layer 2 solution called Lightning Network (LN). Tuesday’s LN Total Value Locked (TVL) statistics show that the Layer 2 network uses Bitcoin worth around 1,300 BTC, or $ 56.3 million.
The RSK smart contract project also offers Bitcoin-linked tokens called RBTC. There are currently 1,594 RBTC ($ 69 million) in circulation. Currently, 2,914 bitcoins ($ 126 million) are used as L-BTC for Blockstream’s Liquid network. All three platforms together hold a total of $ 251 million worth of BTC using today’s bitcoin exchange rates.
The total of Lightning-BTC, RBTC, and L-BTC is a no-brainer compared to $ 12.8 billion in Bitcoin tied to Ethereum (ETH) and the Binance Smart Chain (BSC).
$ 12.8 billion TVL: In terms of Total Value Locked, Ethereum and Binance Smart Chain dwarf the competition
Ethereum has the most bitcoin-linked tokens of any scheme in use today.
Data from Dune Analytics shows that 225,975 BTC is linked to Ethereum through a variety of projects. BTC-linked tokens provided on Ethereum include WBTC (178,865), HBTC (31,906), RENBTC (12,009), IMBTC (1,327), SBTC (1,149), TBTC (1,039), and PBTC (648).
The Wrapped Bitcoin (WBTC) project is by far the largest BTC platform valued at over $ 7 billion using today’s BTC exchange rates. WBTC is also the 25th largest crypto asset in terms of market capitalization. The secured BTC of the Wrapped Bitcoin project is managed by the project’s custodian, Bitgo.
Another strong competitor in the land of Bitcoin-linked tokens is the BTC token, which is issued on the Binance Smart Chain. Binance’s Bitcoin BEP2 or BTCB is a secured Bitcoin-based asset with a market valuation just below WBTC’s market capitalization.
At the time of writing, there are 54,598.02 BTCB in circulation on the Binance Smart Chain, according to statistics from coinmarketcap.com. This equates to a fully diluted market capitalization of Bitcoin-linked tokens valued at over $ 2 billion. During Tuesday’s trading sessions, BTCB had a trading volume of around $ 159 million around the clock, according to market statistics.
Statistics on bscan.com are slightly different from the data recorded on coinmarketcap.com on May 18, 2021. Records from bscan.com show a total of 80.501 BTCB and a circulating supply of 73.105.515028 BTCB. If the statistics from bscan.com are correct, the number of ETH on BSC is 299,080 Bitcoin-linked tokens in circulation today.
Binance Smart Chain and Ethereum both have decentralized exchange dominance
In the case of decentralized stock exchange offers, ETH and BSC are also destroying competition in terms of the number of these trading platforms. Ethereum Dex applications are abundant, but BSC Dex platforms like Pancakeswap have increased trading volume very quickly.
ETH Bitcoin-linked tokens can be traded on a variety of Dex platforms such as Uniswap, Sushiswap, 0x Native, Curve, Balancer, Bancor Network, Tokenlon, Dodo, Synthetix, Dydx, Kyber and Airswap. The Binance Smart Chain (BSC) has EVM functions and BSC tokens can also be exchanged for Pancakeswap and Binance Dex. Not only do pegged bitcoin tokens give users the ability to conduct cross-chain trading programs, but alternative chain BTC tokens can also save users money on network fees.
As of the first quarter of 2021, statistics have shown that Ethereum and the Binance Smart Chain have outperformed the competition in moving BTC to alternative networks and even to Layer 2 solutions like the Lightning Network. It will take an enormous amount of effort before a Layer 2 solution or a sidechain competitor reaches these networks, as ETH and BSC continue to strengthen their dominance in the area of decentralized financing (Defi).
What do you think of the 280,000 Bitcoin used on the Ether and BSC networks? Let us know what you think on this matter in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Dune Analytics, Coinmarketcap.com, Bscan.com, Defipulse.com, liquid.net,
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