Bitcoin-backed Ethereum tokens surpass $2 billion in market value

The number of Bitcoin-backed tokens on the Ethereum blockchain stands at 150,049. This represents 0.8% of Bitcoin’s circulating supply, worth about $2.02 billion, according to data from the analytics service Dune Analytics.

Number of BTC locked on the Ethereum blockchain. Source: Dune Analytics.

The sharp rise in the ‘Bitcoin on Ethereum’ metric has been evident since July amid the frenzy surrounding DeFi protocols. Tokenised bitcoins enable market participants to transact in the primary cryptocurrency when interacting with services in the decentralised finance sector.

By mid-September, the total market value of Bitcoin-pegged Ethereum tokens approached $1 billion. In October, growth slowed.

Trend of BTC locked on the Ethereum blockchain. Source: Dune Analytics.

In this market segment, the leader is the WBTC token, with 117,585 coins locked (~$1.59 billion). Also popular among users are renBTC – 22,499 coins and HBTC – 6,010 coins.

Number of BTC locked in various projects on the Ethereum blockchain. Source: Dune Analytics.

The share of WBTC among the ‘Bitcoin on Ethereum’ stands at 78.1%, renBTC — 14.9%, HBTC — 3.99%.

Share of the \”Bitcoin on Ethereum\” market. Source: Dune Analytics.

The Wrapped Bitcoin project moved to the third place on DeFi Pulse’s ranking by total value locked.

Trend of locked funds in WBTC. Source: DeFi Pulse.

In mid-October, the token-sale platform CoinList updated a record for daily issuance of Wrapped Bitcoin, issuing 4,997 tokens worth $57.1 million.

On 24 September, the crypto fund Three Arrows Capital conducted an issuance of 2,316 WBTC. The record was surpassed by Alameda Research, the parent company of the FTX exchange, which issued a total of 4,093.36 WBTC.

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