According to the most recent analysis, the Ethereum blockchain has more distribution of BTCs than Bitcoin’s own special Lightning Network. Recently DeFi Pulse, the decentralized finance analytics site, published a report indicating that more than $11.4 million worth of Wrapped Bitcoin tokens are locked inside the Ethereum ecosystem.
WBTC is an ERC20 token pegged by bitcoin at a 1:1 ratio. The token is designed to induce more liquidity into the network, however, because WBTC is an ERC20 token, it executes the transfer of tokens quicker than regular BTC. WBTC can easily integrate into the Ethereum network through ETH wallets, DApps, and smart contracts. Right now, the contract’s locked bitcoins have soared significantly. There are almost 1,300 Wrapped Bitcoin in circulation.
Startups Looking to Push the Lightning Network
Lightning Network is layer 2 technology for bitcoin that employs small payment channels to enhance the blockchain ability to manage direct transactions. LN separates transactions from the main blockchain allowing the platform to achieve its goal to decongest bitcoin and minimize transaction fees.
Various startups have recently focused on the Lightning Network to attempt to expand it. Lightning Labs, Bolt Labs, and ACINQ have raised funds of more than $20 million for this cause.
However, compared to the Lightning Network’s extension, the Wrapped Bitcoin has grown very quickly. According to the Bitcoin Visuals report, there’s only around $8 million worth of bitcoin on the Lightning Network.