Bitcoin Sees a 30% Surge in DeFi Lockups While Ether Takes a Hit

Bitcoin’s Growing DeFi Presence

In the ever-shifting world of decentralized finance (DeFi), Bitcoin (BTC) is making waves, even as its price dips. Over the past week, BTC locked in various DeFi projects soared by over 30%. That’s right! While the price party might have been quieter, the Bitcoin crowd has been busy.

Value Locked Dynamics

The total value locked (TVL) in DeFi can be as unpredictable as your uncle’s karaoke skills at family gatherings. Recently, TVL tumbled from a record $9.6 billion on September 2 to just $6.1 billion a week later before recovering to $7.8 billion. It’s a wild ride! And yet, despite these fluctuations, Bitcoin’s locked value has hit a new all-time high, increasing from 67,038 BTC to a staggering 87,752 BTC—equating to about $904 million. That’s a 30.9% boost!

The Leading Role of WBTC

So, where’s all this locked Bitcoin going? A striking 51,295 BTC now resides on Ethereum as Wrapped Bitcoin (WBTC). Remarkably, WBTC is responsible for 63% of this growth since early September, contributing an additional 13,000 BTC to its reserves. If numbers could dance, WBTC would be the star of the show!

RenVM’s Take on Tokenization

Not to be left out, RenVM has also been adding to the acting lineup. With 17,630 BTC now tokenized on Ethereum via RenVM, this segment has increased by over 2,500 BTC at the start of the month. Ethereum may be the flashy leading actor, but Bitcoin’s DeFi contribution is steady and magnificent.

A Glimpse at the Lightning Network

Meanwhile, Bitcoin’s own Lightning Network is taking a less impressive role, accounting for only 1.2% (1,061 BTC) of the total BTC locked in DeFi. The growth here has been, let’s say, slightly underwhelming—just 4 BTC added in September! While it has enjoyed a 23% increase this year, that’s like bringing a water gun to a fire hose fight, especially when WBTC has surged by over 50,000 BTC this year, wilding a whopping 8600% growth.

Ethereum Still Reigns Supreme

Despite Bitcoin’s notable achievements, Ethereum remains the heavyweight champion of the DeFi world. With an impressive $2 billion value coming from 5.6 million locked ETH, the ecosystem has secured nearly 5% of its circulating supply in DeFi protocols, leaving Bitcoin in a distant second place. It’s a classic tale of David and Goliath, but in this case, it’s more like Goliath and Goliath’s less muscled buddy.