The volume of BTC tokenized in Ethereum has started to decline

Over the past two weeks, the value of BTC blocked in Ethereum has decreased by about $120 million, despite the growth of the bitcoin exchange rate. This may be due to a decrease in interest in DeFi.

Over the past twelve days, the number of BTC tokenized in Ethereum has decreased from 153,591 BTC on November 20 to 147,350 BTC today – a decrease of 6,421 BTC or about $120 million. The volume of bitcoins blocked in Ethereum increased dramatically when the DeFi boom began in July.

In July, the equivalent of $ 180 million worth of bitcoins were blocked
in the Ethereum blockchain – mainly in the WBTC, sBTC and renBTC tokens. In September, the amount of tokenized
BTC increased to $1 billion, and in October this figure exceeded
$2 billion.

However, in November, the number of bitcoins blocked in Ethereum began to fall. For example, on June 1, there were 4,000 Wrapped Bitcoins, their number peaked on November 9 at 124,260 WBTC, but has since fallen to 119,893 WBTC. The value of these WBTC increased to $2.3 billion, and the number decreased by 4,367 WBTC.

The withdrawal of BTC from the Ethereum blockchain coincided with a rise in the price of bitcoin and a short-term overcoming
the historical maximum. In addition, interest in the DeFi industry is declining. Traders withdraw their BTC from DeFi smart contracts and sell them on exchanges.

“In September, most of the liquid BTC was already transferred to the Ethereum blockchain for “farming”. In October, the influx of new bitcoins was from those who were “late to the party” earlier, and who were still satisfied with the lower profitability, ” explained Artur Schaback, commercial director and co-founder of Paxful.

Meanwhile, the DeFi industry is increasingly facing scammers and hackers. This week, the Compounder Finance project stopped
to exist – its founders raised $10.8 million and disappeared with the users ‘ money. Last month, hackers broke into the Pickle Finance project and withdrew $19.7 million in DAI tokens. And in September, the organizers of the DeFi Yfdex. Finance project stole $20 million in cryptocurrencies.