114,889 Bitcoins were converted into Bitcoin representations based on Ethereum. This doubles the amount of BTC on Ethereum in less than one month

The amount of Bitcoin converted into Ethereum-based ERC-20 tokens reached $1.2 billion, according to data from Dune Analytics. This means that 0.5% of all Bitcoin market capitalization was ported to the blockchain Ethereum, also equivalent to 3% of Ethereum market capitalization.

This is the largest number of Bitcoins moved to the blockchain Ethereum to date. Just a few weeks ago, the number was less than half of what it is today, standing at just over US$ 500 million.

The Bitcoin blockchain is incompatible with the Ethereum blockchain, but it is possible to allocate bitcoin in certain protocols and receive synthetic bitcoin based on Ethereum. These are ERC-20 tokens – the generic token pattern on Ethereum – that represent Bitcoin.

Popular options include wBTC, renBTC and the recently released tBTC. Some, like wBTC, have custody, which means you give your Bitcoin to a company and they give you the wBTC, also known as Wrapped Bitcoin, in return. Others, like tBTC, have no custody, which means you give your Bitcoin to a protocol and the code – not a company – issues the tBTC.
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People can transfer Bitcoin to Ethereum to enjoy the full spectrum of decentralized financial products (DeFi), such as non-custodial loan protocols, decentralized exchanges and (even more) synthetic assets. These types of cryptomeda and income generation services are otherwise unavailable to Bitcoin holders.

DeFi is the big news of 2020, partially responsible for Ethereum’s recent high. Currently, US$ 10.5 billion were blocked in smart DeFi contracts, according to the DeFi Pulse metrics website. Its rise is again due in part to new token distribution mechanisms, such as the distribution of so-called governance tokens – tokens that allow holders to vote on proposals to update the network – to use the protocols.

Some, like Set Protocol, issue these rewards from yield farm – the practice is known as yield farming – to wBTC, that is, synthetic Bitcoin.

wBTC is the most popular synthetic Bitcoin at Ethereum; it has 73.6% of the market supply. renBTC has 18.4% and Huobi BTC, or hBTC, has 4.2%.