More than 70% of all tokenized Bitcoin, worth over $4.3 billion, have been transferred to Ethereum, according to from Cryptoflows.
This migration highlights a growing trend of utilizing Bitcoin within Ethereum’s decentralized finance (DeFi) ecosystem and other interesting areas.
Billions Of Bitcoin Being Tokenized
Out of the $5.75 billion worth of BTC exported from Bitcoin, over $1.44 billion found its way to the BNB Smart Chain (BSC) with more BTC tokens flowing to Avalanche, Fantom, and Solana.
Just like Ethereum, BSC, Avalanche, and other ecosystems where tokenized BTC found its way to, support smart contracting. Therein, holders can engage in DeFi, possibly earning income.
Bitcoin doesn’t support smart contracts; explaining why some holders are tokenizing their assets. Still, while there appears to be growing demand for DeFi, reading from this outflow of BTC to smart contracting platforms, total value locked (TVL) and decentralized exchange (DEX) volumes have been low and even stagnant.
Data from DefiLlama.com, a DeFi analytics platform, that TVL is flat and below $50 billion.
Meanwhile, DEX trading volumes have been relatively in recent months. This phase of decreased activity could suggest a temporary slowdown in decentralized trading, mirroring the general trend of crypto prices in recent months.
With less than $2 billion of registered DEX trading volumes on May 17, there has been a notable slump in activity over the last months, especially from early 2022.
In November 2021, at the peak of the last bull cycle, DEX trading volumes, on average, stood at over $7 billion.
BTC Prices Suppressed But Coin Is A Safe Haven
While users port their BTC to smart contracting platforms, Bitcoin prices remain under pressure partly due to regulatory decisions across the world, mainly in the United States and Europe.
Bitcoin Price On May 17| Source:
On May 16, the European Union (EU) comprehensive crypto regulations which aim to bring transparency and oversight to the crypto industry, addressing concerns such as money laundering and investor protection.
Even in this bearish environment, Geoff Kendrick, the head of digital assets research at Standard Chartered, recently that Bitcoin prices could rally by as much as 70%, adding $20,000, should the United States default on its debt.
Although Kendrick said the probability of this default is a “low-probability, high-impact event”, his prediction has generated significant interest within the crypto and Bitcoin communities as some begin to theorize the potential impact of the world’s superpower defaulting on its debt obligations on the broader financial landscape.
Any such event would result in economic turmoil and an inevitable loss of faith in traditional financial systems that would most likely drive investors towards alternative assets, mostly cryptocurrencies.
Considering Bitcoin’s stature and setup as a safe haven, the coin, in Kendrick’s view, could benefit, subsequently posting significant gains.
Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.
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His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.
His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.
Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.
Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.
DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.
Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.
Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.
When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.
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