• As of Jan. 18, there were slightly over 5,701 BTC in Avalanche, exceeding the amount locked in the Lightning Network (LN) at 5,229.30 BTC.
• Avalanche is a smart contracting platform that provides developers with an alternative besides Ethereum and has developed an active DeFi community as traders opt to use dApps deployed on the network.
• The Bitcoin-Avalanche Bridge was launched in June 2022, allowing BTC holders to securely move their coins and earn extra rewards and capital gains if BTC prices rise.
The recent data on Jan. 18 reveals that there is more tokenized bitcoin locked in Avalanche than BTC in the Lightning Network (LN). Verified data indicates that as of Jan.18, there were slightly over 5,701 BTC in Avalanche, exceeding the amount locked in the LN at 5,229.30 BTC.
Avalanche is a smart contracting platform that provides developers with an alternative besides Ethereum. The modern blockchain is scalable, and on-chain fees are low. Over the years, it has developed an active DeFi community as traders opt to use dApps deployed on the network. The spike in the number of BTC tokenized in Avalanche, primarily for DeFi activities, is an endorsement of the protocol.
In June 2022, the Bitcoin-Avalanche Bridge was launched, allowing BTC holders to explore Avalanche’s DeFi ecosystem and securely move their coins. The bridge is better than those offered by competitors, as Morgan Krupetsky, the director of business development for institutions in Ava Labs, has pointed out. He cited cost and speed as differentiating factors. Tokenized bitcoin in Avalanche exists as BTC.b and is redeemable for BTC should the holder wishes to convert. By enabling this feature, BTC holders can earn extra rewards and capital gains if BTC prices rise.
The increasing number of BTC in Avalanche is a testament to its growing popularity among traders. The launch of the Bitcoin-Avalanche Bridge has allowed BTC holders to explore the DeFi ecosystem without having to sell the asset and provided greater security. With more tokenized bitcoin locked in Avalanche than BTC in the Lightning Network, it is clear that the protocol is becoming an increasingly attractive option for traders and developers alike.
