Accelerated siphoning of Bitcoin Ethereum is becoming an "absolute black hole" for encrypted assets?

On September 20, the circulation of anchored bitcoins on Ethereum officially exceeded 100,000, reaching a new milestone. Since the gradual launch of the DeFi summer in June, the number of bitcoins flowing into Ethereum has gradually shown an acceleration trend, and it has increased by nearly 10 times in just three months. Just two weeks later, on October 4th, "BTC on Ethereum" exceeded 140,000 (defipulse data). In the past month, the increment of more than 10,000 per week has risen rapidly, so that the speed of inflow into Ethereum is far Exceeding the speed of mining output in the same period (about 6000/week), it is amazing. Ethereum has gradually evolved into an absolute black hole that siphons Bitcoin. 01 Bitcoin Finds a New Narrative Way After the emergence of Ethereum and the public chain ecology, whether it is the frenzy of ICO or the popularity of DApps, almost every carnival in the industry over the years is no longer dominated by Bitcoin, and even gradually There is a tendency to dance alone without Bitcoin. It was not until this DeFi boom that BTC was finally no longer absent. With the blowout development of the Ethereum DeFi ecosystem, the demand for Bitcoin as the highest quality asset in the circle has also begun to emerge, especially for "giant whales" and "classical players", the BTC in the hands of the DeFi feast can no longer be "Non-interest-bearing assets", on the contrary, can participate in various use scenarios of DeFi under a certain risk balance. Accelerated expansion of digital renminbi application scenarios and pilot scope: Jinse Finance reported that Alipay recently joined the digital renminbi acceptance network and opened access to digital renminbi payment functions to Taobao users. At the same time, the pilot areas on the Digital RMB App have been further expanded recently. On the basis of the 23 regions in the previous 15 provinces and cities, the scope was further expanded to cover the entire provinces of Guangdong, Jiangsu, Hebei, and Sichuan, and Jinan, Nanning, Fangchenggang, Kunming, and Xishuangbanna Dai Autonomous Prefecture were added as new ones. pilot area. Industry insiders said that the continuous expansion of pilot application scenarios and pilot areas will help the public to test the performance of the digital RMB system more deeply. (Economic Information Daily) [2022/12/21 21:57:56] In the picture below, a "giant whale" on Aave mortgaged 8,000 BTC and lent more than 60,000 ETH, millions of LINK and 800 YFI, which is the most One of the good examples. Similarly, the growth and success of the DeFi ecosystem is also inseparable from the value support of Bitcoin, the native asset. To some extent, this can be understood as the "Bretton Woods System" in the DeFi ecosystem—the bottom layer of DeFi, which requires a An "absolute asset" that can be anchored. Therefore, whether it is a Bitcoin "Holder" or a DeFi "scientist", Bitcoin, as a core asset, cross-chains to Ethereum to participate in DeFi (mortgage lending, liquidity mining, etc.), it is a matter of course It hit it off. Animoca Brands and Brinc launch NFT accelerator Launchpad Luna: On July 20th, Animoca Brands and global venture capital accelerator Brinc launched Launchpad Luna, a new accelerator project designed to identify, guide and invest in promising blockchain and NFT startups. (animocabrands) [2021/7/20 1:05:50] ERC20 Bitcoin represented by WBTC, renBTC, and HBTC has also exploded from this application, and has become an important channel for Bitcoin to enter the DeFi ecosystem. These channels lead the amount of BTC funds to Ethereum, which further proves the potential of DeFi and the advantages of the Ethereum ecology, and realizes the transfer (transaction) of Bitcoin to burn Ethereum. At the same time, Bitcoin, which has been quiet for the past three months, has slowly found a new position in the increasingly popular DeFi boom-entering the DeFi ecosystem with unprecedented high returns and diversified scenarios, which has once again strengthened and confirmed Bitcoin. Relatively core position in digital assets. Therefore, BTC's entry into the Ethereum ecosystem and DeFi in the form of ERC20 is a win-win choice for both parties, and once the scene and demand appear, the market volume is almost immeasurable. As of October 8, about 140,000 bitcoins, worth $1.5 billion, had flowed into Ethereum and the DeFi ecosystem in the form of ERC20. Argentine Startup Accelerator Grupo Neutrón Invests Millions in Crypto Mining Operation: Argentina's Mar del Plata tech zone will launch large-scale crypto mining operation with support from a domestic startup accelerator. Lothal Mining will be responsible for the mining company's operations on the site. Grupo Neutrón invested nearly 45 million pesos ($310,000) and plans to distribute an additional 200 million pesos ($2.21 million), according to local media La Capital. The infrastructure is already in place and the company will initially mine ethereum, however, plans to expand to other cryptocurrencies. The funds provided by the accelerator are used to purchase hardware, refrigeration equipment, build mines, hire staff for electrical maintenance, and other activities. In addition, officials from the Argentine National Ministry of Industry are also inspecting the start-up of the project at the mine. (Bitcoin.com) [2021/3/7 18:22:25] This may still be just a small test of a market with a volume of 100 billion in the future. BTC is becoming an alternative to USDT and DAI in the form of ERC20 such as WBTC and renBTC. The largest anchored asset other than the USD stablecoin. In fact, the current pattern distribution of the entire ERC20 bitcoin is quite similar to that of the US dollar stable currency - both centralized and decentralized designs, and presents a pattern of "one super and many strong". 02 Competitive landscape that is thriving and blooming. At present, among all the anchored bitcoins on the Ethereum chain, the top three are WBTC, renBTC, and HBTC, and the top two are dominant. Among them, the circulation of WBTC accounts for about 73% of the total amount of anchored bitcoins on Ethereum. operate. Voice | Standard Consensus Xu Jiang: The emergence of Libra will lead to accelerated differentiation of blockchain projects: Today, the "2020 Blockchain Industry Review and Prospect" sponsored by Standard Consensus in conjunction with Collin Capital, Muddy Waters Public Relations, and Golden Finance was held in Beijing. Xu Jiang, chief analyst of Standard Consensus, said that based on major events and statistical data in recent years (total market value of digital assets, proportion of Bitcoin, macroeconomic data, and various data correlation analysis), it can be inferred that: 1 Bitcoin and other digital assets It is a high-risk asset and not a safe-haven asset; 2 Most people are risk-averse and the economy continues to decline, while digital assets such as Bitcoin are strongly correlated with economic indicators, causing funds to flee from digital assets. Due to the occurrence of the above two phenomena, the total market value of digital assets will further shrink, the market value of Bitcoin will further increase, and low-risk digital assets will develop more vigorously. In addition, because the current blockchain projects still cannot effectively improve production efficiency, the emergence of projects such as Libra that can improve production efficiency will lead to accelerated differentiation of blockchain projects and blockchain will begin to transform the world. [2020/1/8] According to defipulse data, on January 1 this year, the minting volume of WBTC was only 591 pieces, and nine months later, on October 1st, the total circulation of WBTC reached 92,017 pieces, a full 155 times increase , Simultaneously with the surge in WBTC minting volume is its ecological siege. At present, almost all top DeFi have achieved coverage. However, as an ERC-20 token based on Ethereum's 1:1 fully mortgaged Bitcoin, WBTC relies on a consortium model, which is a bit like the existing bank's second-tier operating system, where custodians (only one, BitGo) and ordinary There is also the role of "acceptor" (requires qualification certification, multiple) among users, and the entire operation mechanism of WBTC revolves around one institution (WBTC DAO) and two roles (Merchant acceptor and Custodian custodian). Yuhang Development Zone focuses on the introduction of blockchain and other projects to accelerate the transformation of "smart manufacturing": Hangzhou Net, June 3rd. Among the 219 state-level economic development zones in the country, the development zone (Qianjiang Economic Development Zone) jumped into the top 100 for the first time, ranking 77th. At present, the development zone is deeply implementing the "No. 1 Project" of the digital economy, focusing on attracting future industrial projects such as artificial intelligence, blockchain, and robotics, promoting the construction of intelligent manufacturing bases, and accelerating the transformation from "manufacturing" to "smart manufacturing". [2018/6/4] The acceptor handles the casting, burning and custody of assets, which directly means centralization—users need to rely on and trust the acceptor to carry out the casting and burning of WBTC. The specific casting and circulation process is that the user first makes a request to a qualified acceptor, and then the acceptor performs the necessary KYC/AML process to verify the user's identity. After completing a series of necessary operations, BTC is transferred from the user to the acceptor, and WBTC is transferred from The acceptor transfers to the user. The same goes for the combustion process. However, renBTC is different from WBTC’s relatively centralized BTC custody solution. Users deposit native BTC into the designated RenBridge gateway as collateral, and RenVM issues the corresponding renBTC in the Ethereum network through smart contracts. The entire issuance process is relatively decentralized. Therefore, renBTC is regarded as another dimension of BTC anchoring scheme - it does not rely on any central custodian, nor does it require its users to perform mandatory KYC / AML procedures, so it is expanding rapidly in DeFi projects. The only BTC-anchored project with a circulation of more than 10,000 outside WBTC. In addition, on February 14 this year, Huobi launched its own 1:1 anchored Bitcoin and issued "ERC20 Bitcoin" on the main chain of Ethereum - HBTC, which supports Bitcoin users to easily and quickly enter DeFi such as Uniswap, Curve, and Balancer. The agreement currently ranks third with more than 4,800 tokens, which is also a typical example of the DeFi ecology at the trading platform level using this as a starting point. In addition, imBTC led by imtoken, synthetic sBTC on synthetix, and decentralized tBTC led by keep are also in full bloom. After the demand for BTC to enter various DeFi scenarios emerged, a safe and reliable cross-chain bridge has become the core factor that bears the brunt, especially for the majority of Bitcoin "Holders", who hold a lot of money and security concerns are the first reason to stay on the sidelines reason. Therefore, whoever can guarantee absolute security and experience a convenient BTC cross-chain solution may become the next "Tether" of ERC20 Bitcoin, a market that may be worth hundreds of billions in the future. At the same time, with the popularity of ERC20 Bitcoin, the Bitcoin ecology at the payment level is also secretly suffering a lot. Most directly, if the rate at which bitcoins flow into Ethereum continues to follow this trend, it will undoubtedly weaken the circulation and payment of bitcoins in the bitcoin blockchain. 03 ERC20 Bitcoin is gradually shaking the Lightning Network. Since 2020, the Bitcoin Lightning Network (Lightning Network), which has been committed to solving the payment of Bitcoin in small and high-frequency retail scenarios, has become less and less popular, and even seems quite lonely. You must know The beta version began to land in March 2018, and it was once the focus of attention in the circle. As a layer 2 expansion solution for Bitcoin, the Lightning Network aims to increase the transaction speed of Bitcoin and reduce the transaction cost of Bitcoin. It enables users to deposit, withdraw and transfer Bitcoin with lower fees and higher efficiency. However, according to 1ML data, as of October 8, the number of locked bitcoins in the Lightning Network was only 1,096, which is not only far inferior to the tens of thousands of locked bitcoins of WBTC and renBTC, but also lags behind HBTC and others. It only ranks sixth among ERC20 bitcoins. The contrast is even more intense. In the past month, the number of locked Bitcoins in the entire Lightning Network has increased by less than 30, and since the beginning of this year, the increase has only been 250. This is not even as good as WBTC's recent increase of less than one day. After more than a year, ERC20 Bitcoin completed a hundredfold improvement in three months. Therefore, as a star project that has been working for nearly three years, the report card that the Lightning Network has now handed over is undoubtedly unsatisfactory compared with the rising stars of ERC20 Bitcoin. As far as the network is concerned, it can be called a dimensionality reduction blow. Even though ERC20 Bitcoin is temporarily limited by the congestion of the main chain of Ethereum, resulting in the payment level not having much advantage in handling fees compared with the main chain of Bitcoin, but combined with the advancement of Ethereum layer 2, especially relying on the innovative fertile ground of the Ethereum ecology, ERC20 Bitcoin is gradually becoming a black hole in the true sense of BTC, whether it is at the payment level or in the derived DeFi scene. If the inflow of bitcoins into Ethereum continues to increase, and users choose more ERC20 forms at the transfer level, then for the bitcoin network that has completed the third halving and miners' income is increasingly dependent on on-chain fees, it is undoubtedly It will be a far-reaching change. Interestingly, the two sides seem to have switched roles as well. On the one hand, the Lightning Network began to think about adding Liquidity Mining to itself, by issuing Gov Token to attract BTC deposits, in an attempt to increase the usability of the Lightning Network. On the other hand, just like the Bitcoin Lightning Network "torch relay" event that attracted a lot of attention on Twitter in January 2019, tBTC has recently launched a similar "tBTCzksynctorch" torch relay competition starting from October 1st. Form, with the help of zksync's layer 2 solution, the nearly zero-cost and fast Bitcoin torch transfer has been achieved, and it is currently in full swing. Not long ago, Huobi announced that HDOT (the anchored DOT asset on the Ethereum chain) is expected to be officially launched soon, starting with stablecoins such as USDT anchoring assets outside the circle, and starting with the Bitcoin circle in this year's DeFi summer. The accelerated inflow of native assets is a milestone, and Ethereum is gradually becoming an "absolute black hole" of encrypted assets.

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