Bridged Bitcoin on Avalanche Surpasses Value Locked on the Lightning Network – Bitcoin News

Bridged Bitcoin on Avalanche Surpasses Value Locked on the Lightning Network – Bitcoin News

[ad_1]

Members of the crypto community have been discussing the number of bitcoins that have been bridged over to the Avalanche network, which is now larger than the total value locked on the Lightning Network. At the time of writing, there are 5,493 bitcoins circulating on the Avalanche blockchain, while the Lightning Network holds 5,248 bitcoins.

Number of Bitcoin Bridged to Avalanche Climbs Past Lightning Network Capacity

This past week digital currency advocates have been discussing the rising number of bitcoin (BTC) bridged over to the Avalanche (AVAX) network. Seven days ago, the crypto asset known as BTCb saw its supply surpass the number of bitcoins locked on the Lightning Network (LN). The reason for the celebration is that it took much less time to beat the LN’s total value locked (TVL) or capacity. At the time of writing, the LN has around 5,248 bitcoin TVLwhich is worth around $120 million using today’s BTC prices.

Bridged Bitcoin on Avalanche Surpasses Value Locked on the Lightning Network

A week ago Jan. 16, an Avalanche (AVAX) supporter known as “Ojrdev” tweeted about the number of bitcoins transferred to the AVAX chain. Avalanche has transferred more [bitcoin] (BTCb) than is locked in [the] Lightning Network,” Ojrdev tweeted. “The Avalanche consensus mechanism is also faster than Lightning.” Many other AVAX supporters agreed and celebrate the milestone. While the LN currently holds 5,248 BTCthe number of BTCb, according to snowtrace.iois around 5,493 BTCb, worth $125.5 million using current BTC exchange rates.

Bridged Bitcoin on Avalanche Surpasses Value Locked on the Lightning Network

During the same period, the largest number of tokenized bitcoin on any blockchain is the Wrapped Bitcoin project, which uses the Ethereum blockchain network. Currently, there are 179,697 WBTC in circulation, according to the WBTC dashboard. There’s also a total of 52,888.86 BTCB hosted on the Binance Smart Chain (BSC). The BSC’s cache of bitcoins is larger than what is hosted on AVAX. However, the BTCb amount is larger than the 3,564 BTC locked on Blockstream’s Liquid Network, and also larger than the 3,496 RBTC on the RSK network.

The number of tokenized bitcoins hosted on alternative blockchains, networks, and sidechains has been increasing since 2017, but the pace accelerated when WBTC launched in 2019. The main goal was to make finality faster and transaction costs cheaper. In 2020, however, fees on the Ethereum blockchain skyrocketed. In mid-May 2021, the average ETH fee was nearly $40 per transaction.

As a result, tokenized bitcoins have moved to alternative blockchains in addition to the LN and Ethereum. The rise of BTCb on AVAX suggests that many crypto supporters are finding value in using a pegged version of BTC on an alternative chain. Meanwhile, the vast number of circulating WBTC hosted on the Ethereum blockchain has been declining over the last 12 months.

Tags in this story

alternative blockchain, alternative blockchains, alternative chain, Avalanche, Avalanche Blockchain, Avalanche network, AVAX, Binance Smart Chain, bitcoin, Blockstream, BSC, BTC, BTCB, capacity, circulating, consensus mechanism, Crypto Supporters, Ethereum, Ethereum blockchain, Fees, finality, lightning network, liquid network, ln, networks, Ojrdev, peg, RSK network, sidechains, snowtrace.io, tokenized bitcoin, tokenized bitcoins, Transaction Costs, TVL, WBTC, wrapped bitcoin

What do you think about the rise of BTCb on the Avalanche network? Share your thoughts and opinions in the comments below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols today emerging.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.



[ad_2]

Source link

Leave a Comment