2% of BTC’s Total Supply Is Tokenized on ETH2 min read
One of BTC’s biggest whales is none other than ETH itself. That’s right, one of the biggest BTC holders on the market is the second largest cryptocurrency on the market, ETH.
There are several protocols that allow users to use Bitcoin on ETH. In this way, it is possible to take advantage of the entire ecosystem of smart contracts, NFTs, DeFi and ETH dApps.
For this, BTCs are “encapsulated”. That is, they are locked into a smart contract and an ERC-20 token representing BTC (as if it were a stablecoin) is issued to the user.
According to data from BtcOnEthereum, there are a total of 335,501 BTC tokenized on the ETH blockchain, with Wrapped BTC (wBTC) constituting the majority of BTC tokens on ETH.
At the time of writing, there are 273,481 wBTC tokens with a market cap of around $12 billion.
BTC on ETH
wBTC is followed by Huobi BTC with 39,884 HBTC tokens on the ETH network. This BTC-pegged token has a market cap of nearly $2 billion.
Meanwhile, RenBTC, which claims to peg BTC in a decentralized way, has an offer of 14,756 BTC, worth $600 million.
Other ETH BTC tokens featured on the site are Synthetic BTC (sBTC) with 4,055 tokens. Its market cap is $174,145,632.
Tokenized BTC (imBTC) has a supply of 1,214 imBTC, while Token BTC (tBTC) has a supply of 835 BTC-pegged tokens on the ETH blockchain.
Ptoken BTC (pBTC) contributes 635 BTC tokens on the ETH blockchain. It has a market cap of $27,255,459.
Furthermore, there are 618 oBTC tokens on ETH with a market cap of $26,543,098 while vBTC only provides 23 BTC-backed tokens on the ETH network.
All of them, especially the biggest ones like wBTC, can access the entire decentralized financial space (DeFi) running on ETH
They can be used as collateral to obtain potentially tax-free loans among other features.