2% of the total Bitcoin supply is tokenized on Ethereum

While this is not its role, now more than ever Ethereum is acting as a second layer for Bitcoin. After all, about 2% of bitcoins in circulation are on the Ethereum blockchain as a form of token. Data from BtcOnEthereum, a platform for analyzing bitcoins tokenized on the Ethereum network, shows that there are a total of 335,501 bitcoins in token form on the Ethereum blockchain. Its growth over the past few years is shown in the image below.
Growth in the number of bitcoins in token form on Ethereum in recent years. Digging deeper, Wrapped Bitcoin (wBTC) makes up the majority of bitcoin tokens on Ethereum. There are currently 273,481 wBTC tokens on the network, representing a market capitalization of 56 billion reais. Such an amount is so large that wBTC is displayed as the 17th largest cryptocurrency on the market. Besides wBTC, Huobi BTC is the second largest with 39,884 HBTC tokens on the Ethereum network. This BTC-linked token has a market cap of over BRL 8 billion. RenBTC, which claims to peg bitcoin in a decentralized way, has an offer of 14,756 BTC, worth R$3 billion. Other Bitcoin tokens on Ethereum featured on the website are Synthetic Bitcoin (sBTC) with 4,055 tokens, with a market capitalization of BRL 337,549,443, imBTC with an offer of 1,214 tokens (BRL 256 million) and Token BTC (tBTC) with 835 tokens linked to Bitcoin on the Ethereum blockchain, equivalent to BRL 172 million. Finally, Ptoken BTC (pBTC) contributes 635 BTC tokens on Ethereum. This has a market value of BRL 131,157,557. As well as 618 oBTC tokens with a market cap of 128 million reais and vBTC with only 23 BTC-backed tokens on the Ethereum network, equivalent to almost R$5 million.
List of Bitcoin-backed tokens on Ethereum. Source: Dune Analytics. As transaction fees on the Ethereum network are far more expensive than on the Bitcoin network itself, such tokens, especially larger ones like wBTC, are then used to access the decentralized finance (DeFi) sector found on Ethereum. They can be used as collateral to obtain loans, for example allowing Bitcoin to be the currency used instead of another such as Ethereum itself. Most of these bitcoin tokens require third-party escrow, so it significantly diminishes security compared to Bitcoin itself. In this case, an entity mints wBTC, for example, after the user sends native BTC to it. However, some of these tokens try to maintain the decentralization of these exchanges, such as renBTC. Others, like sBTC, do not have real bitcoin behind them, they just follow its price, like the stablecoin DAI, using other coins as collateral, including tokenized BTC. All of this variety came into being in just about three years, wBTC being the first with its launch in 2019. Even in this small corner, we have seen significant innovation in a very short time with Bitcoin and Ethereum merging, at least to some extent. Score. Creating a complementary relationship so that one benefits from the other, in a kind of synergy. However, it is worth noting that Ethereum may be gaining ground in this fight, especially with the arrival of its big update.