The total number of Bitcoins locked in decentralized finance (DeFi) protocols reached an all-time high as DeFi markets began to show signs of recovery.
Bitcoin holders converted 141,683 BTC into ERC-20 tokens!
DeFi Pulse reveals that Bitcoin holders converted more than $ 1.5 billion worth of 141,683 BTC into ERC-20 tokens to participate in the developing but rapidly growing decentralized finance space. Due to the incompatibility between the Bitcoin and Ethereum blockchains, BTC users need to convert their assets into Ethereum-based tokens to take advantage of the capabilities of DeFi platforms.
A popular choice among Bitcoin owners is to convert their BTC to Bitcoin with 1: 1 index (wBTC). With WBTC, Bitcoin holders can explore many of DeFi's advantages, including the ability to offer synthetic tokens as collateral to earn interest on lending platforms such as Compound (COMP) and Aave (LEND). At the time of writing, there are approximately 95,700 wBTC stored on the Ethereum Blockchain.
What does the increase in the number of Bitcoins locked on DeFi point?
The increase in the number of BTC locked in DeFi points to the growth of the decentralized financial sector. The yield farming protocol yearn.finance (YFI) recently jumped hard after dropping nearly 60% from its all-time high of $ 43,873, according to CoinMarketCap data. Aave and Chainlink (LINK) were also among the strong rising altcoins.
The DeFi rally seems to coincide with a larger rally involving the wider crypto market. Crypto analyst Kevin Svenson tells his 11,000 followers that the latest move in crypto has forced him to reconsider his stance. Kevin Svenson, a graphic artist at Cryptowat.ch acquired by Kraken, emphasizes that Chainlink constitutes a "potential uptrend". Kevin Svenson said on the subject:
Although I have been more neutral lately, things seem (until now) much better than I expected. Moving on top of bitcoin and eth students .. Setting up a potential rise in the link .. If the global market continues to rise, it will rise again.