Over the past two weeks, the value of BTC blocked in Ethereum has decreased by about $ 120 million, despite the rise in the bitcoin rate. This could be attributed to declining interest in DeFi.
Over the past twelve days, the amount of BTC tokenized in Ethereum has dropped from 153,591 BTC on November 20 to 147,350 BTC today - a decrease of 6,421 BTC, or about $ 120 million. The volume of Bitcoin locked in Ethereum skyrocketed when the DeFi boom began in July.
In July, the equivalent of $ 180 million bitcoins were locked onto the Ethereum blockchain - mostly in WBTC, sBTC and renBTC tokens. In September, the amount of tokenized BTC increased to $ 1 billion, and in October this figure exceeded $ 2 billion.
However, in November, the number of bitcoins blocked in Ethereum began to fall. For example, there were 4,000 Wrapped Bitcoin on June 1, their number peaked on November 9 at 124,260 WBTC, but has since dropped to 119,893 WBTC. The value of these WBTC increased to $ 2.3 billion, and the amount decreased by 4,367 WBTC.
The withdrawal of BTC from the Ethereum blockchain coincided with an increase in the price of bitcoin and a short-term overcoming of a historical high. In addition, interest in the DeFi industry is declining. Traders withdraw their BTC from DeFi smart contracts and sell them on exchanges.
“In September, most of the liquid BTC has already been transferred to the Ethereum blockchain for“ farming ”. In October, the influx of new bitcoins was from those who were late to the party earlier, and who were still satisfied with the lower yield, "explained Artur Schaback, Paxful's commercial director and co-founder.
Meanwhile, the DeFi industry is increasingly confronted with scams and hackers. This week, the Compounder Finance project ceased to exist - its founders raised $ 10.8 million and disappeared with users' money. Last month, hackers hacked into the Pickle Finance project and withdrew $ 19.7 million in DAI tokens. And in September, the organizers of the DeFi project Yfdex.Finance stole $ 20 million in cryptocurrencies.
# Bitcoin # Ethereum #DeFi #WBTC # Token # Altcoin
