Almost $100 million in Bitcoin was moved to Ethereum in July which was mostly led by retail traders. Ethereum remains the most popular off-chain destination for transferring bitcoins as its supply of tokenized BTC increased by 70% in July as we reported in our Ethereum news today.
About $100 million in BTC was moved to Ethereum and there are now about $255 million tokenized and used in ETH-based protocols. Wrapped BTC represents 76% of the total tokenized bitcoin supply as it increased by more than $96 million in July. Tokenized bitcoins allow traders and investors to denominate the transactions in Bitcoin while using applications that are built on other blockchains. The head of financial products at CoinList Matthieu Jobbe Duval said:
“We experienced a dramatic WBTC growth in July, led by our retail users.”
Tokenizing Bitcoin on Ethereum is probably the biggest opportunity for decentralized finance’s growth today according to Andy Bromberg. Also, For the past month, Bitcoin’s price was trading in a tight range and the trading volume was relatively flat. In the meantime, a few tokens on the Ethereum network were topping the price charts especially all of the DeFi tokens. New data from Messari shows that Ethereum becomes the most used blockchain, surpassing Bitcoin as the network that settles most value per day.
This means that the dollar value of transactions of both Ethereum and ETH is higher than the one of Bitcoin. While the DeFi sector started gaining a lot of popularity, the stablecoin transactions were responsible for most of the volume, reaching $508 billion in transactions in 2020. This figure is about the double of $254 billion back in 2019. The latest reports also show that Ethereum fees increase by 500% thanks to the influx of users on the network, because of the growth in the decentralized finance sector. The past few weeks were quite strong for the ETH adoption as we saw a spike in users, transactions, and addresses.
The data shows Ethereum transactions are getting close to the 2018 levels as the GAS prices increased and are set at record highs. Transactional activity broke the 1 million per day level which was set last year, and it is nearing 1.3 million per day as it was seen in January 2018. The current transaction activity is ranging between the 1.1 and the 1.2 million/day level.