Bitcoin is overtaking decentralized finance sector (DeFi)

Bitcoin has been injected into Ethereum’s DeFi ecosystem, but it remains to be seen whether Bitcoin will emerge as the leading reserve asset fueling decentralized applications.

The number of bitcoins on the Ethereum network continues to grow. It now stands at $22.5 million, more than twice the quantity of BTC on the Lightning Network.

The share of decentralized finance (DeFi) in the Ethereum ecosystem is constantly growing. Although the total amount of funds blocked under DeFi-related smart contracts has fallen sharply in the last few months, the sector still remains promising.

In fact, since May, new trends have been observed in the DeFi ecosystem: the growth of BTC (WBTC) on the Ethereum platform.

Bitcoin has been very popular on Ethereum over the past few weeks. As of March 1, the DeFi Ethereum ecosystem was about $9.73 million WBTC. According to the DeFi Pulse service, this figure has now increased to $22.5 million.

The amount of WBTC on the Ethereum platform is now more than twice the amount blocked in its own Lightning Network. According to DeFi Pulse, only about $9.2 million BTC is blocked on the Lightning Network.

The Ethereum network is clearly ahead of its own Bitcoin ecosystem. The appearance of WBTC on the Ethereum network clearly proves that DeFi is not going to give up its positions.

Earn more ETH with our fair crypto lotto!

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Jeffrey Hancock

Blockchain enthusiast developer and writer. I love video games, blockchain and the hot symbiosis of these two worlds.