• Data from Jan. 18 reveals that there is more tokenized bitcoin locked in Avalanche than BTC in the Lightning Network (LN).
• Avalanche is a smart contracting platform that provides developers with an alternative besides Ethereum.
• The Bitcoin-Avalanche Bridge was launched in June 2022 and allows BTC holders to securely move their coins and earn extra rewards and capital gains if BTC prices rise.
Bitcoin has seen an increasing number of users opting to explore the world of decentralized finance (DeFi), and Avalanche has become a popular choice for those keen on taking advantage of the protocol’s competitive features. Verified data from Jan. 18 reveals that there is more tokenized bitcoin locked in Avalanche than BTC in the Lightning Network (LN).
Avalanche is a smart contracting platform that provides developers with an alternative to Ethereum. The modern blockchain is scalable and on-chain fees are low. This has led to an active DeFi community, with traders opting to use dApps deployed on the network. Avalanche’s growing popularity was further cemented with the launch of the Bitcoin-Avalanche Bridge in June 2022.
The bridge allows BTC holders to securely move their coins and take advantage of the DeFi ecosystem without having to sell the asset. Tokenized bitcoin in Avalanche exists as BTC.b, which can be redeemed for BTC should the holder wish to convert. By enabling this feature, BTC holders can explore the benefits that come with a DeFi protocol like Avalanche, such as earning extra rewards and capital gains if BTC prices rise.
Morgan Krupetsky, the director of business development for institutions in Ava Labs, believes that the cross-chain bridge offered by Avalanche is better than those offered by its competitors. Krupetsky cites cost and speed as two of the main factors that make the bridge stand out. “A lot of users are moving to Avalanche because of the low costs associated with moving funds,” said Krupetsky. “The speed is also much faster than other protocols, making it a great option for traders.”
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. With the Bitcoin-Avalanche Bridge continuing to grow in popularity, it’s likely that the amount of tokenized bitcoin in Avalanche will continue to rise. This shows that Avalanche is a viable alternative to Ethereum and the Lightning Network, and could be a good option for DeFi traders looking to get the most out of their Bitcoin.