2% of Bitcoin’s total supply is tokenized on ethereum
There are several protocols that allow users to use Bitcoins on Ethereum. In this way, it is possible to take advantage of the entire ecosystem of smart contracts, NFTs, DeFi and ETH dApps.
For this, BTCs are “encapsulated”. That is, they are locked into a smart contract and an ERC-20 token representing BTC (as if it were a stablecoin) is issued to the user.
According to data from BtcOnEthereum, there are a total of 335,501 Bitcoins tokenized on the ETH blockchain, with Wrapped Bitcoin (wBTC) constituting the majority of Bitcoin tokens on Ethereum.
At the time of writing, there are 273,481 wBTC tokens with a market cap of around $12 billion.
wBTC is followed by Huobi BTC with 39,884 HBTC tokens on the Ethereum network. This BTC-pegged token has a market cap of nearly $2 billion.
Meanwhile, RenBTC, which claims to peg Bitcoin in a decentralized way, has an offer of 14,756 BTC, worth $600 million.
Other ETH Bitcoin tokens featured on the site are Synthetic Bitcoin (sBTC) with 4,055 tokens. Its market cap is $174,145,632.
Tokenized BTC (imBTC) has a supply of 1,214 imBTC, while Token BTC (tBTC) has a supply of 835 Bitcoin-pegged tokens on the Ethereum blockchain.
Ptoken BTC (pBTC) contributes 635 BTC tokens on the Ethereum blockchain. It has a market cap of $27,255,459.
Furthermore, there are 618 oBTC tokens on Ethereum with a market cap of $26,543,098 while vBTC only provides 23 BTC-backed tokens on the Ethereum network.
All of them, especially the biggest ones like wBTC, can access the entire decentralized financial space (DeFi) running on ETH
They can be used as collateral to obtain potentially tax-free loans among other features.