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The value of bitcoin on Ethereum is down from about 270,000 just over a month ago to about 240,000 in August 2022, backing a trend that can be seen with similar types of cryptocurrencies.
Based on the current bitcoin price, we can see the value of this amount of cryptocurrency is down significantly.
This drop is visualized on one of the dashboards posted by, where several wrapped cryptocurrencies exchanging hands on the Ethereum blockchain are analyzed.
These are synthetic cryptocurrencies of major cryptocurrencies such as bitcoin created to be compatible with other blockchains.
SEE ALSOEXPLAINER: 4 Common Wrapped Tokens and How They Work
The latest data as of 12th August 2022 indicates that bitcoin on Ethereum is responsible for 3.44% of the market capitalization and 1.384% of the entire bitcoin tokens.
From the analysis, we can see that all 7 analyzed have registered a drop between June 2022 – August 2022, at the cliff region that is indicated by the red arrow:
Some examples of wrapped Bitcoin on Ethereum include:
- wBTC (Wrapped Bitcoin)
- hBTC (Huobi BTC)
wBTC (Wrapped Bitcoin), is the most common of such synthetic cryptocurrencies, and is a tokenized version of Bitcoin (BTC) that runs on the Ethereum (ETH) blockchain.
It is an ERC-20 token which is the standard token type for fungible tokens that can operate across the Ethereum ecosystem including:
- Decentralized exchanges
- Prediction markets
- NFT plaforms
- Lending platforms
On these platforms, which represent hundreds of dApps on the Ethereum network, bitcoin holders look to take advantage of the opportunities offered by the various DefF protocols on Ethereum, such as staking and yield farming.
People also convert their bitcoin to wrapped bitcoin (wBTC) for use on Ethereum as collateral for loans.
wBTC has a 1:1 ratio with bitcoin, and makes it possible for those who want to convert BTC into ETH, enabling liquidity to move across the 2 largest blockchains even though bitcoin is purely on its own blockchain.
Finally, stablecoins, a key mover of liquidity across crypto, have remained stable on Ethereum over the last 1 month, with total stablecoin market capitalization on the smart contract networkbetween $91 billlion and $92 billion.
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