Bitcoin on Ethereum Is Booming: Closing In on $1 Billion in Value – Decrypt

In brief

  • Bitcoin transferred to the Ethereum blockchain is now worth more than $800 million, up 37% so far this month.
  • Wrapped Bitcoin and renBTC remain the most popular transfer protocols, but Huobi’s HBTC has recently surged.
  • The primary cross-chain coins are all centralized in some way.

Close to 80,000 Bitcoin have now been transferred to the Ethereum blockchain, as DeFi protocols attract value back to their liquidity pools following an early September crypto market correction.

Even as prices for Bitcoin and Ethereum fell starting September 1, BTC transferred onto the Ethereum blockchain has already increased nearly 37% so far this month, according to data from Dune Analytics.

The increase in Wrapped Bitcoin (WBTC) and other cross-chain Bitcoin lockups has pushed their aggregate value to more than $800 million from less than $600 million at the start of the month. The total value is now equivalent to more than 2% of the entire Ethereum market cap. 

The trend is a signal that, despite price volatility in digital assets, the appetite for DeFi returns remains strong even among BTC holders.

Cross-chain transfer protocols like WBTC and renBTC use either trusted third-party custodians or smart contract-controlled wallets to hold one digital asset, in this case Bitcoin, while making a replica token on another blockchain, like Ethereum. The replicated assets, sometimes referred