240,000 Bitcoins are Currently Wrapped on Ethereum Blockchain

Around 240,000 Bitcoins have been wrapped onto Ethereum, accounting for almost 1.3 percent of the entire circulating supply of the cryptocurrency.

Furthermore, the entire Bitcoin on the Ethereum blockchain accounts for 1.1 percent of the overall Bitcoin supply. The circulating quantity of Bitcoins is 18,729,756 out of a total quantity of 21 million.

The Block’s statistics dashboard highlighted the rising proportion of Bitcoin floating inventory wrapped onto Ethereum. A few months earlier, the number of tokenized Bitcoin was minimal. Since the start of 2021, the value of tokenized Bitcoin has risen steadily, increasing by 100,000 BTC.

When a certain quantity of BTC is tied up and a matching number of ETH tokens are released, the BTCs are encased on Ethereum. The value of Bitcoin-backed tokens is fixed to the value of Bitcoin. They may, nevertheless, be used on any DeFi platform and in other networks. Furthermore, the tokenization procedure may be undone by deleting the tokens and then releasing the Bitcoin.

The majority of the tokens had been moved to wrapped Bitcoin, according to the statistics (WBTC). At the time of writing, WBTC accounts held 80% of all Ethereum-based tokens. These tokens account for 1% of Bitcoin’s total circulating supply. HBTC and renBTC are two other tokenized variants of Bitcoin on Ethereum that are featured on the statistics dashboard.

ImBTC, sBTC, and tBTC are some of the others. Apart from HBTC, all tokenized variants are handled via protocols that let users to change to their tokenized BTC variant and vice versa. HBTC, on the other hand, is a tokenized version of Huobi, a cryptocurrency exchange.

Despite the fact that Bitcoin still has roughly 3 million coins to mine before reaching its maximum limit, the final BTC will not be created until 2140. After every block is successfully verified, bitcoin miners are compensated with a portion of the cryptocurrency. Over time, the model has changed. At the time of the first cryptocurrency’s introduction, the mining incentive was 50 BTCs.

In 2012, the reward was reduced to 25 Bitcoins, and in 2016, it was half again to 12.5 Bitcoins. Miners are currently receiving 6.25 BTCs for each block they mine beginning of February 2021. When BTCs are halved every 4 years, the pace of inflation is reduced.

Every four years, the halving will persist until there are no more Bitcoins to mine. Since its inception in 2009, Bitcoin has risen to become the most valuable cryptocurrency in terms of market capitalization. Bitcoin has lured both individual and institutional investors.

According to a recent survey, 32 institutions own approximately $12 billion in Bitcoin. Several well-known figures, such as Michael Saylor, are optimistic about Bitcoin’s prospects in the financial world. Notwithstanding the drop in the cryptocurrency market, many believe Bitcoin is poised to rise. At the time of writing, Bitcoin was down nearly 10% to roughly $32,900.