Members of the crypto community have discussed the number of bitcoins that have been tethered to the Avalanche Network, which is now greater than the total value locked on the Lightning Network. As of this writing, 5,493 bitcoins are circulating on the Avalanche blockchain, while the Lightning Network holds 5,248 bitcoins.
The number of bitcoins connected to the avalanche exceeds the capacity of the Lightning network
Last week, digital currency advocates discussed the growing number of bitcoins (BTC) connected to the Avalanche network (AVAX). Seven days ago, the crypto asset known as BTCb saw its supply exceed the number of bitcoins blocked on the Lightning Network (LN). The reason for the celebration is that it took much less time to beat the LN’s Total Locked Value (TVL) or ability. At the time of writing, the LN has approximately 5,248 bitcoin TVLwhich is worth around $120 million using BTC prices.
A week ago, on January 16, a Avalanche (AVAX) a supporter known as “Ojrdev” tweeted about the number of bitcoins transferred to the AVAX channel. “Avalanche transferred more [bitcoin] (BTCb) that is locked in [the] Lightning Network”, Ojrdev tweeted. “The Avalanche consensus mechanism is also faster than Lightning.” Many other AVAX supporters OK and celebrated 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 the current BTC change rate.
During the same period, the largest number of tokenized bitcoins on any blockchain is the Wrapped Bitcoin project, which uses the Ethereum blockchain network. Currently, there are 179,697 WBTCs in circulation, according to the WBTC Dashboard. There is also a total of 52,888.86 BTC hosted on the Binance Smart Chain (BSC). The BSC’s bitcoin cache is larger than what is hosted on AVAX. However, the amount of BTCb is greater than the 3,564 BTC locked to 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 picked up when WBTC was launched in 2019. The main goal was to make finality faster and transaction costs cheaper. In 2020, however, fees on the Ethereum blockchain have skyrocketed. In mid-May 2021, the average ETH the fees were almost $40 per trade.
As a result, tokenized bitcoins have moved to alternative blockchains besides LN and Ethereum. The rise of BTCb on AVAX suggests that many crypto proponents are finding value in using a pegged version of BTC on an alternate channel. Meanwhile, the large number of circulating WBTC hosted on the Ethereum blockchain has been decline over the past 12 months.
What do you think of the rise of BTCb on the Avalanche network? Share your thoughts and opinions in the comments below.
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