A cryptocurrency strategist thinks that the number of Bitcoin (BTC) on Ethereum is expected to skyrocket by the next year in 2021. According to the strategist’s claim, the number of Wrapped Bitcoin (WBTC) would reach $30 billion by the year 2021. However, currently, the total number of Bitcoin locked on Ethereum is standing at $1.5 billion.
BTC on ETH to rise by 20-fold by 2021
The Head of DTCC Capital and a crypto strategist, Spencer Noon has claimed in a tweet that the number of Bitcoin (BTC) locked on Ethereum will skyrocket by 20-fold by the year 2021 and it will hit around $30 billion.
The reason behind this massive prediction given by this strategist might be the fact that over the course of recent months, the Bitcoin-backed ERC20 token Wrapped Bitcoin (WBTC) that represents Bitcoin on Ethereum has witnessed a significant demand because of the decentralized finance (DeFi) boom.
Users cannot move their Bitcoin onto Ethereum directly therefore they have to convert the leading digital currency into synthetic tokens such as WBTC for transferring them to the Ethereum blockchain. So they make use of Wrapped Bitcoin for getting their BTC into decentralized finance (DeFi) on the ETH blockchain.
Compound Finance’s general counsel Jake Chervinsky believes that this is not the perfect way to take the major digital currency Bitcoin into DeFi through Wrapped Bitcoin. Explaining his point of view, he said “it requires trusting a custodian (Bitgo) to hold BTC backing the wBTC token. You might use it to earn yield in DeFi, trade BTC on a decentralized exchange, etc.”
0.624% of all bitcoins in existence are available on Ethereum
Currently, there is an amount of $1.5 billion worth of Bitcoin (131,445 BTC) locked on Ethereum. This represents 0.624 percent of total BTC in existence available on the Ethereum blockchain. This amount locked on Ethereum is equal to 3.6% of Ethereum’s entire market capitalization.
Out of 131,445 BTC on Ethereum, 73 percent are present in the form of Wrapped Bitcoin. renBTC counts for twenty percent of it.