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According to data from onchain, there are now 69,836 synthetic bitcoin tokens (over $ 700 million) circulating on the Ethereum blockchain. Of the six synthetic bitcoin token projects, bitcoin wrapping (WBTC) commands the largest number of coins with over 63% and 44,622 WBTC.
Synthetic bitcoin (BTC) has grown tremendously in the past few weeks and as of the latest news.Bitcoin.com report on the subject, there were 38,021 BTC circulating on the Ethereum chain.
Since then, that metric has increased by more than 83% as there are now 69,836 synthetic bitcoin tokens in circulation on 7 September 2020. Dune Analytics shows that there are seven synthetic BTC projects but tBTC has zero coins minted, while the other six projects have between 45 BTC to over 40,000.
The main project that coins the most synthetic BTC is the Wrapped Bitcoin (WBTC) protocol which commands around 44,622 BTC to date or 63%. Ren protocol renBTC has more than 23% of the aggregate total synthetic BTC with 16,268 renBTC in circulation today.
The hBTC token has 4,810 and sBTC has a total of 2,918 at the time of publication. The two projects with the least amount of synthetic BTC are imBTC (1,173) and pBTC (45).
The WBTC has gained a lot of traction and on Monday reports details that the Alameda Research organization obtained 70% of the WBTC minted in August. Alameda was co-founded by FTX CEO Sam Bankman-Fried.
A large percentage of synthetic bitcoin circulates among holders while the rest is used on platforms such as Compound, Balancer, Aave and Uniswap.
Synthetic bitcoin trading takes place on some centralized exchanges like FTX and Binance revealed the WBTC listing this week. On decentralized exchange platforms (dex), synthetic bitcoin exchanges take place on 0x, Bancor, Synthetix, Balance, Curve and Uniswap.
Despite massive growth and popularity, Ethereum co-founder Vitalik Buterin explained that he is concerned about synthetic bitcoin projects.
“I continue to be concerned that these wrapped BTC bridges are reliable,” Buterin he wrote on August 16. “I hope everyone * at least * can upgrade to a properly sized multi-sig,” the developer added.
Following Buterin’s statements, the community discussed a research paper from the Wanchain project that claimed the Ren protocol stored all secured bitcoins in a single address.
“Paradoxically, we found that the Bitcoin address provided by renBTC to which users transfer their real BTC for the block has not changed since the first day it went online,” writes the Wanchain report.
Despite the trust issues, with 69,836 synthetic bitcoin tokens on the Ethereum blockchain, the ETH network continues to consolidate as BTC’s most dominant offchain solution.
What do you think of the $ 700 million of BTC circulating on the ETH chain in synthetic form? Let us know in the comments below.
Image credits: Shutterstock, Pixabay, Wiki Commons, Dune Analytics,
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