The decentralized finance movement has helped drive up the value of Ethereum and other ERC-20 based projects compared to Bitcoin and other assets. It has prompted even Bitcoin holders to “wrap” their BTC in Ethereum.
The amount of BTC supply wrapped in Ethereum has doubled in August alone, but why exactly is this happening, and what does it mean for Bitcoin?
Explosive DeFi Trend Teaches Old Dogs New Tricks As Crypto Adapts
The buzz surrounding DeFi has breathed new life into the crypto market, but no assets more than Ethereum any related projects. Ethereum is up over 200% year to date as a result.
The DeFi bandwagon has created a thriving sub-industry, where crypto insiders speculate on assets they know full well are potentially “worthless” yet are willing to risk capital anyway.
Related Reading | Why DeFi Bulls Being Over 90% Net Long Is Dangerous a For Crypto
So far, these insiders have been making a fortune. Several DeFi projects have risen the ranks of the crypto market top 100, while one such token has now more than tripled the price per BTC currently.
The amount of ETH tokens locked up in DeFi has soared throughout the year. Now, Bitcoin is following a similar path, with the amount of the BTC supply wrapped in Ethereum doubling in August alone according to glassnode data.
But what is the reason for crypto investors moving their Bitcoin to