Almost half a million bitcoins are tokenized in other blockchains; value exceeds US$21 billion


Almost half a million bitcoins are tokenized in other blockchains;  value exceeds US$21 billion

Bitcoin Illustration: Unsplash.

There are approximately 434,265.43 bitcoin-linked tokens in circulation that are worth over $21 billion across multiple blockchains. Ten different bitcoin-indexed projects exist today and the Wrapped Bitcoin (WBTC) project dominates nearly 60% of all tokenized bitcoins in circulation.

To benefit from the advantages of different blockchains or sidechains, bitcoiners “lock” their coins into smart contracts to move tokens backed by BTC.

On the Ethereum network, bitcoins can be used in DeFi projects, for example, and on the Liquid network, bitcoins can be moved quickly and privately.

US$ 21 billion of the 21 million BTC

Toward the end of 2018, when tokenization really started to heat up in the crypto universe, several different projects launched token protocols tied to bitcoin. In early 2018, the Wrapped Bitcoin (WBTC) project emerged on Ethereum.

Major Bitcoin tokenization projects on Ethereum
Total BTC “on stake” to circulate on the Ethereum network. Source: Dune Analytics and Bitcoin.com

At one point, the WBTC surpassed Lightning Network in terms of Total Blocked Value (TVL). Today, WBTC is the largest bitcoin tokenization project with 259,090 BTC in circulation on the Ethereum network.

Statistics indicate that there are seven BTC token projects in Ethereum and, in all, the seven projects command 323,264 BTC in TVL. The second largest BTC protocol tokenized on Ethereum is HBTC with 39,884 BTC.

HBTC is followed by RENBTC (17,054), SBTC (4,203), IMBTC (1,317), PBTC (888) and TBTC (828), respectively. As a result, the 323,264 bitcoins held in Ethereum represent 74.43% of the total BTC-indexed tokens in circulation today.

Bitcoins are also in Binance Smart Chain, Liquid and RSK

Just below the WBTC in terms of TVL is BTCB, a bitcoin tokenization project in Binance Smart Chain. According to December 28 data, there are around 105,115.44 BTCB in circulation.

Bitcoin BEP2 Coinmarketcap Page
Bitcoin BEP2 (BTCB) data. Source: Coinmarketcap and Bitcoin.com

BTCB has a fully diluted market capitalization of approximately $5.52 billion and $43.6 million in global trade volume. The most active exchanges listing BTCB today include Hitbtc, Pancakeswap v2, Thorchain and Pancakeswap v1.

Finally, bitcoins are also used in parallel networks to BTC’s own blockchain, such as RSK and Liquid. Today, RSK has 2,522 RBTC in circulation, which is also backed by 95 exahash per second (EH/s) of computational power from the BTC.

RSK
RSK data. Source: Bitcoin.com

Blockstream’s federated sidechain, Liquid, has about 3,363.99 L-BTC in circulation at the time of this writing. The current value of outstanding L-BTC is about US$165.4 million.

LBTC in circulation

Liquid’s L-BTC represent just 0.77% of the tokenized bitcoins in circulation today. The RBTC is even smaller, as its RBTC assets represent only 0.58% of the aggregate total of 434,265.43.

On the current trajectory of all BTC tokenization projects, there will soon be around half a million tokenized bitcoins leveraged across various alternative networks.

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Thomas Miles

Cryptocurrency is the most recently discovered currency which will be likely at the help of modernization across the next few decades. With a limited control from the government, the crypto market is independent of many features of a sound market as we know it. Thomas brings these stories to us by weaving them into articles of general importance to all those looking at the fluctuations in the market, or new entries. Thomas is also the founder of Bulletin Bits and is an excellent leader. His leadership is the kind that makes him the most knowledgeable and experienced on the team. His wonderful work ethic and attitude are worthy of imitation!

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