Nearly $60M in Bitcoin Moved to Ethereum in June

Nearly $60 million worth of bitcoins moved to Ethereum during June, 75% of which came through Wrapped Bitcoin.

AccessTimeIconJul 7, 2020 at 8:19 p.m. UTC
Updated Sep 14, 2021 at 9:00 a.m. UTC

Nearly $60 million worth of bitcoins moved to Ethereum during June, according to data estimates from Dune Analytics. Wrapped Bitcoin, the oldest tokenized bitcoin protocol on Ethereum, is responsible for roughly 75% of that growth after moving more than 4,800 BTC to Ethereum last month. 

Demand has increased for using bitcoin in a variety of decentralized financial services as Ethereum continues to be the most popular off-chain destination for bitcoins. More specifically, yield farming and MakerDAO adding tokenized bitcoin as collateral are likely strong catalysts, said Medio Demarco, former associate at Deutsche Bank and co-founder of cryptocurrency research firm Delphi Digital.

“The recent trend shouldn't come as a surprise and will probably continue,” Demarco told CoinDesk.

CoinDesk - Unknown

The increasing popularity of tokenized bitcoin is also no surprise to Ben Chan, CTO at BitGo, the cryptocurrency payments processor that spearheaded Wrapped Bitcoin. “The purpose of WBTC is to bring bitcoin to the world of decentralized finance,” Chan said. “Yield opportunities for lending and supplying WBTC” in Ethereum-based applications are driving recent growth, he added.

Currently $132 million worth of bitcoin is on Ethereum, at the time of publication, or roughly 0.08% of the leading cryptocurrency’s market capitalization, according to OnChainFX.

CoinDesk - Unknown

Off-chain bitcoin supply distribution as of July 2020

Is the growing demand to use bitcoin on Ethereum a positive signal for the leading cryptocurrency? According to Demarco, the trend has a “synergistic” effect for both blockchains. 

Chan agreed, telling CoinDesk that, for Ethereum, growth in the value of assets on decentralized finance applications is “a step towards the maturation of trustless and transparent financial services.” For Bitcoin, the benefit comes from being able to earn yield and collateralize bitcoin,” which “adds incentive” for users to invest in the cryptocurrency, according to Chan. 

Using bitcoin on Ethereum is “potentially bullish for both networks,” Chan said.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Crypto Lender Celsius Network Exploring Options to ‘Preserve and Protect’ Assets

Celsius Network is consulting with experts to try to reduce the fallout from its mid-June swoon.

CoinDesk - Unknown
3
CoinDesk - Unknown
Vitalik's Mom Offers Advice on How to Make It in Crypto

“You need to have a lot of perseverance and a lot of patience,” she said in an interview for CoinDesk's "Future of Work Week."

CoinDesk - Unknown
4
CoinDesk - Unknown
Do Rate Hikes Matter? Bitcoin Traders Learn How Fed Moves Markets in Twitter Era

The Federal Reserve has become a big believer in forward guidance over the years, starting with Ben Bernanke. But the central bank under Jerome Powell has taken transparency to a new level.

CoinDesk - Unknown