The volume of tokenized bitcoins on the Ethereum blockchain fell by $ 120 million in 2 weeks
The amount of bitcoins fixed on the Ethereum blockchain is declining amid weakening interest in the decentralized finance (DeFi) space. As a result, traders withdraw bitcoins from smart contracts in order to be able to sell them on the market..
Since November 20, the number of bitcoins on the Ethereum blockchain has decreased from 153,591 to 147,350, or by $ 120 million. At the same time, Bitcoin made its last spurt to historic highs.
The number of tokenized bitcoins skyrocketed this year, with the DeFi boom in the Ethereum ecosystem, which gained full steam by the end of the summer. Users who did not want to part with bitcoins, but at the same time did not want to miss out on high rates in DeFi, could receive them in a synthesized form and invest in profitable farming.
The momentum persisted for some time in the fall, and the volume of tokenized bitcoins continued to grow, albeit at a slower pace, until the trend turned negative in November..
The largest tokenized bitcoin project is wBTC, accounting for 80% of the market. On June 1, there were about 4,000 wBTC or $ 38 million. On November 9, a record was reached at around 124,260 BTC, or $ 1.9 billion. Since then, the value has dropped to 119,893, although the total value has risen to $ 2.3 billion.
Many holders of these tokenized bitcoins have probably decided that in the face of the declining attractiveness of DeFi, it would be wiser to lock in the profits in the market resulting from the rise of the cryptocurrency above $ 19,000..
“DeFi’s growth has been fueled by the excitement over profitable farming. However, trading activity in the DeFi protocols fell along with the reduced incentives to provide liquidity. This is why traders began to show less demand for tokenized assets such as WBTC, ”said CryptoCompare Product Manager Charlie Humberston.
Ethereum Giveaway on Twitter Brings $ 50,000 – $ 100,000 a Day – Cheater Revelation The Ethereum Giveaway on Twitter is quite…
FTX Exchange Goes To Add Ethereum Phase Zero Ethereum 2.0 Tokens FTX Crypto Derivatives Exchange To Launch Markets For Cryptocurrency Coins…
Opinion: The decline in reward in the bitcoin blockchain could be the next catalyst for the growth of Bitcoin price charts relative to the first two reward reductions…