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BTC Fever Takes over DeFi Investors and They Are Using Ethereum Blockchain to Convert Their BTC to Altcoins

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Nov 4, 2020
BTC Fever Takes over DeFi Investors and They Are Using Ethereum Blockchain to Convert Their BTC to Altcoins

One of the well-renowned crypto-blockchain data analyzing firms, Dune Analytics has shared surprising statistics. The Dune Analytics has revealed that the volume of the synthetic Bitcoin (BTC) currently being traded on the Ethereum blockchain has become record high.

The firm stated that the current synthetic Bitcoin (BTC) traded volume on the Ethereum platform is $2 Billion. Dune Analytics made shared this information followed by a surprising and promising revelation.

It revealed that the Ethereum platform experienced an increase of $1 Billion in synthetic Bitcoin (BTC) trades in just a month’s time. As the synthetic Bitcoin (BTC) trading volume on the Ethereum platform at the start of October was $1 Billion.

At present, there are around 150,049 Bitcoins that currently flow through the Ethereum platform. This number of Bitcoins on the Ethereum blockchain makes up around $2 billion. It also makes up for 4.3% of Ethereum’s total capitalization in the crypto-market.

It has been observed lately, that the conversion of Bitcoin (BTC) into ERC-20 has been increasing among the investors. The process of converting Bitcoin (BTC) into ERC-20 is being carried out through altcoins that are backed by Bitcoin (BTC).

At present, one of the most prominent altcoin is dubbed the Wrapped Bitcoin (WBTC). On the Ethereum platform, the Wrapped Bitcoin (WBTC) is currently counted among the top ten tokens. It currently ranks as the sixth-largest token with respect to market capitalization on the Ethereum platform.

AAt the time of writing, the Wrapped Bitcoin (WBTC) has a market capitalization of $1.59 Billion and is considered the most leveraged token for trading Bitcoin for other altcoins.

In the past few weeks, the Bitcoin (BTC) price witnessed a slight drop but it still managed to stay and trade above $13k. This bullish behavior from BTC has developed a lot of trust among investors who are after high yields.

These investors are obtaining resources through the DeFi protocols and investing in BTC, thus, increasing its capitalization. Then the investors are converting their synthetic Bitcoin (BTC) into ERC-20 tokens with the help of altcoins. They are waiting for the right time and when the prices of Bitcoin (BTC) get too high, they will go for the sell-outs.

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