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More than 70% of all tokenized Bitcoin, price over $4.3 billion, have been transferred to Ethereum, in accordance with data from Cryptoflows.

This migration highlights a rising pattern of using Bitcoin inside Ethereum’s decentralized finance (DeFi) ecosystem and different attention-grabbing areas.

Billions Of Bitcoin Being Tokenized

Out of the $5.75 billion price of BTC exported from Bitcoin, over $1.44 billion discovered its option to the BNB Smart Chain (BSC) with extra BTC tokens flowing to Avalanche, Fantom, and Solana.

Just like Ethereum, BSC, Avalanche, and different ecosystems the place tokenized BTC discovered its option to, assist sensible contracting. Therein, holders can have interaction in DeFi, probably incomes earnings.

Bitcoin doesn’t assist sensible contracts; explaining why some holders are tokenizing their property. Still, whereas there seems to be rising demand for DeFi, studying from this outflow of BTC to sensible contracting platforms, whole worth locked (TVL) and decentralized trade (DEX) volumes have been low and even stagnant.

Data from DefiLlama.com, a DeFi analytics platform, shows that TVL is flat and beneath $50 billion.

Meanwhile, DEX buying and selling volumes have been comparatively low in latest months. This part of decreased exercise may counsel a brief slowdown in decentralized buying and selling, mirroring the overall pattern of crypto costs in latest months.

With lower than $2 billion of registered DEX buying and selling volumes on May 17, there was a notable droop in exercise over the past months, particularly from early 2022.

In November 2021, on the peak of the final bull cycle, DEX buying and selling volumes, on common, stood at over $7 billion.

BTC Prices Suppressed But Coin Is A Safe Haven

While customers port their BTC to sensible contracting platforms, Bitcoin costs stay underneath stress partly as a result of regulatory choices internationally, primarily within the United States and Europe.

On May 16, the European Union (EU) approved complete crypto rules which purpose to convey transparency and oversight to the crypto business, addressing issues reminiscent of cash laundering and investor safety.

Even on this bearish atmosphere, Geoff Kendrick, the pinnacle of digital property analysis at Standard Chartered, lately opined that Bitcoin costs may rally by as a lot as 70%, including $20,000, ought to the United States default on its debt.

Related Reading: Bitcoin Loses Grip On $27,000 Handle Amid Debt Ceiling Concerns – Details

Although Kendrick mentioned the likelihood of this default is a “low-probability, high-impact event”, his prediction has generated important curiosity inside the crypto and Bitcoin communities as some start to theorize the potential impression of the world’s superpower defaulting on its debt obligations on the broader monetary panorama.

Any such occasion would end in financial turmoil and an inevitable lack of religion in conventional monetary methods that might more than likely drive buyers in direction of different property, largely cryptocurrencies.

Considering Bitcoin’s stature and setup as a protected haven, the coin, in Kendrick’s view, may gain advantage, subsequently posting important features.

Feature From Canva, Chart From TradingView