Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.
DeFi networks show signs of the increase despite the current decrease on the market. Since September, 2 Bitcoins available in the networks have increased from 67,038 BTC until 87,752 BTC.
Even though the coin market has seen a retraction in the past week, the DeFi networks seem unaffected by sentiments. Signals show that there is an increase in the volume of Bitcoins locked in decentralized networks over the past week. Data available from DefiPulse revealed that there has been 30% rise in the volume of the coins in the networks.
Presently, there are 87,752 Bitcoins valued at $904 million locked up in DeFi networks. This is an increase from 67,038 Bitcoins that were available to the networks as at September 2 which had a total value of $694 million. The report stated that the increase to current value is an all time high. In addition it was mentioned there that half this value is on Ethereum in WBTC which contributes 63% of the change in the volume of locked up coins in the DeFi networks. WBTC has added further 13,000 to the network.
Another platform that has added substantially to the BTC boost in the DeFi system is RenVM which is a tokenization project for Bitcoin on Ethereum. The platform presently holds 17,630 BTC with an increase of 2,500 since the beginning of the month. Those are by far, more than what the Bitcoin’s Lightning Network has contributed. The LN can be attributed just 1.2% (1,061 BTC). The coins from the Lightning Network increased by only 4 BTC, which is not as impressive as the DeFi. This is just 0.02% of the overall increase in BTC value for the system in September.
In comparison to WBTC, Lightning Network contributed 23% of the BTC growth while WBT can be attributed with 8600% with their respective 198 BTC and 50,000 BTC since the beginning of 2020.
Even with the massive increase in the volume of BTC in DeFi, Bitcoin is still lower in lockups in comparison with Ethereum. This is despite the fact that 600,000 ETH has been removed from DeFi networks. Ethereum accounts for higher with 5.6 million coins still locked. This is 5% of all Ethereum in circulation.