$22.5M BTC Wrapped on Ethereum More than Double BTC on Lightning Network

Share Article
In Brief
  • $22.5M in BTC is now wrapped on Ethereum, which has been rising since early May.

  • That's more than twice as much BTC as is represented on Bitcoin's own Lightning Network.

  • The growing amount of WBTC on Ethereum is a clear sign that DeFi is here to stay.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

The amount of BTC wrapped on Ethereum continues to grow. It now stands at $22.5 million, more than twice the BTC on Lightning Network.



Decentralized finance (also known as ‘DeFi’) is a growing part of the Ethereum ecosystem. Although the total amount of funds locked in DeFi-related smart contracts has plummeted in the last few months, the sector still shows promise.

In fact, since May, we have seen a new development in the DeFi ecosystem: the growth of wrapped BTC (WBTC) on Ethereum.



WBTC on Ethereum Tops $22.5M

Bitcoin has become a hot asset on Ethereum in the past few weeks. On March 1, around $9.73M WBTC was represented in Ethereum’s DeFi ecosystem. That number has now grown to a stunning $22.5M, according to DeFi Pulse.

The amount of WBTC on Ethereum is now more than twice as much as what is locked on Bitcoin’s own Lightning Network. According to DeFi Pulse, Lightning Network only has around $9.2M worth of BTC locked into it.

Ethereum is clearly dominating Bitcoin’s own ecosystem.

Is DeFi the Future?

The emergence of WBTC on Ethereum makes a compelling case that DeFi is here to stay. However, security for DeFi-related products still leaves much to be desired.

Last month, the DeFi app Lendf.Me suffered a hack and $25M was drained from its smart contract. Eventually, the funds were returned—only after being trolled by the hacker himself who seemed to revel in it. There have been many other instances of hacking which has caused some commentators to grow entirely skeptical of the sector. Some have even called DeFi a ’24-7 multi-million dollar hacker honeypot.’ 

However, its advocates say we are still early and liken DeFi to the internet in 1997. As of now, DeFi products have not proven themselves reliable enough to protect assets. However, the amount of WBTC on Ethereum now indicates that the sector is likely here to stay.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Raised in the U.S, Lucian graduated with a BA in economic history. An accomplished freelance journalist, he specializes in writing about the cryptocurrency space and the digital '4th industrial revolution' we find ourselves in. <a href="mailto:crypto.inquiries@protonmail.com">Email.</a>

Follow Author

Daily signals, Bitcoin analytics and traders chat. Join our Telegram today!

Let’s Go

What are Crypto Wallets? Everything You Need to Know

Learn now