The latest data as of 12th August 2022 indicates that bitcoin on Ethereum is responsible for 3.44% of the market capitalization and 1.384% of the entire bitcoin tokens.
From the analysis, we can see that all 7 analyzed have registered a drop between June 2022 – August 2022, at the cliff region that is indicated by the red arrow:
Some examples of wrapped Bitcoin on Ethereum include:
wBTC (Wrapped Bitcoin)
hBTC (Huobi BTC)
wBTC (Wrapped Bitcoin), is the most common of such synthetic cryptocurrencies, and is a tokenized version of Bitcoin (BTC) that runs on the Ethereum (ETH) blockchain.
It is an ERC-20 token which is the standard token type for fungible tokens that can operate across the Ethereum ecosystem including:
On these platforms, which represent hundreds of dApps on the Ethereum network, bitcoin holders look to take advantage of the opportunities offered by the various DefF protocols on Ethereum, such as staking and yield farming.
People also convert their bitcoin to wrapped bitcoin (wBTC) for use on Ethereum as collateral for loans.
wBTC has a 1:1 ratio with bitcoin, and makes it possible for those who want to convert BTC into ETH, enabling liquidity to move across the 2 largest blockchains even though bitcoin is purely on its own blockchain.
Finally, stablecoins, a key mover of liquidity across crypto, have remained stable on Ethereum over the last 1 month, with total stablecoin market capitalization on the smart contract network barely moving out of a range between $91 billlion and $92 billion.