Recently, the number of synthetic Bitcoins in the DeFi, decentralized finance area, which has attracted great attention of the cryptocurrency universe, has started to increase significantly.
As it is known, Bitcoin investors who want to access DeFi protocols on Ethereum are turning to projects that tokenize Bitcoin in order to use their BTC in this industry and benefit from the high profits of decentralized finance.
The latest data show that there are approximately 70 thousand synthetic Bitcoins in Ethereum. The number is expected to increase accordingly, as the DeFi industry continues to receive great interest following the launch of new Bitcoin tokenization protocols.
Incredible increase in tokenized Bitcoins
According to on-chain data taken from Dune Analytics; There are currently 69,836 synthetic Bitcoins on the Ethereum blockchain. Of course, we have to say that these Bitcoins are different from BTC traded on normal exchanges. In fact, they are Bitcoins clad in Ethereum or tokenized as mentioned above. The purpose here is to use Bitcoins in DeFi protocols such as Ether.
The reason for the huge increase in the tokenized Bitcoin figure is of course directly proportional to the growth of DeFi. This indicates that demand for the DeFi industry will continue to increase.
Increased 83 percent in just three weeks
As of August 16, there were 38,021 tokenized Bitcoins on Ethereum. However, when we look at this report, it is seen that the figure has increased by 83 percent. These synthetic Bitcoins are mostly; It is used in protocols such as Balancer, Compound, Uniswap. In addition, there are only 7 protocols that tokenize crypto money for use in DeFi.
Wrapped Bitcoin (WBTC) protocol is the one with the most tokenized Bitcoin among these platforms. WBTC owns approximately 63 percent of all synthetic Bitcoins in existence. RenBTC follows WBTC with 23 percent. ImBTC and pBTC platforms have the least synthetic Bitcoin. In addition, due to technical reasons, the platform called tBTC has not been able to issue any tokens so far.
Although synthetic Bitcoins have been the focus of attention lately, Vitalik Buterin, founding partner of Ethereum, is skeptical. Buterin had this to say about this situation in August:
“I am concerned about whether these tokenized Bitcoins are reliable. I hope they can all at least switch to a reasonably sized “multi sig” … “