Bitcoin (BTC) Value on Ethereum (ETH) Blockchain Exceeds $100M. Is That Bearish for BTC?

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Sun, 06/28/2020 - 15:01
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Vladislav Sopov
Wrapped Bitcoin (wBTC) and similar tokens are a class of assets that represent Bitcoin (BTC) but are issued on top of the Ethereum (ETH) blockchain.
Bitcoin (BTC) Value on Ethereum (ETH) Blockchain Exceeds $100M. Is That Bearish for BTC?
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Through multiple services, it is now known that total value of Bitcoin (BTC) assets on the Ethereum (ETH) blockchain exceeds $100M. Some analysts believe that this may be a crucial milestone for the 'wrapping' services and a mark of death for Bitcoin (BTC).

Nine-Digit Milestone

Yesterday, participants from the Ethereum (ETH) community noticed that the volume of tokenized Bitcoin (BTC) on the Ethereum (ETH) network inched closer to the $100,000,000 mark. Some hours ago, (June 28, 2020), Anthony Sassano, an Ethereum (ETH) educationist, host of Into the Ether podcast, and EthHub Co-Founder,  reported on a major milestone:

Anthony Sassano is sure that today's news are bearish for Bitcoin (BTC)
Image via Twitter

He also posted an ultra-bearish analysis on the influence that this progress may have on Bitcoin (BTC), both on the asset and the blockchain.

In terms of evaluating the asset, Bitcoin (BTC) on Ethereum (ETH) will never play in the sandbox with Ethereum (ETH) by itself. Staking and fee payouts are unavailable with wBTC. In a nutshell, the flagship cryptocurrency has become one more coin in the Ethereum (ETH) realm.

Moreover, the progress of tokenizing can also damage the integrity and security of the Bitcoin (BTC) network as rewards for maintaining this integrity are a major economic catalyst for miners. More transactions occur on Ethereum (ETH), and less fees are paid to Bitcoin (BTC) miners.

Opportunity for Scaling

What that being said, more miners and holders will be interested in working directly with the Ethereum (ETH) network. It is the Ethereum (ETH) network that may allow every asset to become programmable and join the amazing and profitable DeFi game, Mr. Sassano highlights.

As recently covered by U.Today Crypto News, legendary Bitcoin (BTC) developer and Bitcoin Foundation Founder Gavin Andresen believes that the migration to the Ethereum (ETH) network may be the best solution for the Bitcoin (BTC) scaling problem.

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Mr. Andresen outlined that only the tokenization of Bitcoin (BTC) with Ethereum (ETH) 2.0 instruments may resolve this thorny issue much better than the Lightning Network.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)