• 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.
• 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.
In recent months, the Avalanche blockchain has seen an uptick in the amount of tokenized bitcoin locked in its network. Data on Jan. 18 reveals that there are now slightly over 5,701 BTC in Avalanche, exceeding the amount locked in the Lightning Network (LN) at 5,229.30 BTC. This spike in the number of BTC tokenized in Avalanche is a testament to the growth of the protocol, which has become an increasingly popular choice for developers seeking an alternative to Ethereum.
At the core of Avalanche’s success lies a powerful consensus algorithm and a low-cost, high-speed platform for developers to build decentralized applications (dApps). With the launch of the Bitcoin-Avalanche Bridge in June 2022, BTC holders were able to securely move their coins and explore Avalanche’s DeFi ecosystem with the added benefit of earning extra rewards and capital gains if BTC prices rose. This bridge also provided a better option than competitors, according to Morgan Krupetsky, Director of Business Development for Institutions in Ava Labs, due to its cost and speed.
The tokenized version of bitcoin on Avalanche, known as BTC.b, is redeemable for BTC should holders wish to convert. This unique feature has allowed traders to use Bitcoin in DeFi without the need to sell the asset, leading to a new record for BTC.b’s circulating supply and further solidifying Avalanche’s position as a leading DeFi platform.
As the popularity of Avalanche continues to grow among developers and traders, it will be interesting to watch the amount of BTC locked in the network and what new features will be added in the near future. With the blockchain’s low-cost and high-speed platform, Avalanche could become a major player in the DeFi space in the coming years.