The Lightning Network (LN) has more tokenized bitcoin than BTC in an avalanche, data from January 18 shows.
Bitcoin in Avalanche
Verified data shows that as of January 18, Avalanche had 5,701 BTC, more than the amount. Locked 5,229.30 in LN BTC.
Avalanche is a smart contract platform that provides developers with an alternative to Ethereum. Modern blockchains are scalable, and on-chain fees are low. Over the years, it has developed an active DeFi community as traders choose to use dApps deployed on the network.
An increase in the number of tokenized BTC in Avalanche is primarily protocol validation for DeFi activities. This is especially considering that the Bitcoin-Avalanche Bridge was launched in June 2022.
Tokenized Bitcoin in Avalanche exists as BTC.b and can be redeemed for BTC if the holder wishes to convert. By enabling this feature, BTC holders wishing to explore Avalanche’s DeFi ecosystem can securely transfer their coins and receive additional rewards and capital when BTC prices rise.
Morgan Kropitsky, Director of Business Development for Enterprises at Eva Labs. said Their cross chain bridge is better than the bridge offered by competitors. He cited price and speed as differentiating factors.
“Many institutions I speak with have at least some portion of their holdings allocated to BTC – either as a reserve asset, for portfolio diversification, or for other reasons. Want to send/receive BTC quickly and cost-effectively, passively earn a yield on your BTC holdings, or borrow against them, BTC.b on Avalanche is your easy answer to doing so. Is.”
Morgan Kropitsky, Ava Labs.
Is the power grid dying?
This development could prove to be another setback for LN. This Bitcoin Layer 2 platform was initially intended to offload transactions through off-chain channels. The goal was to scale the legacy network and rid the network of high transaction fees.
However, since the last significant congestion in late 2017, the Bitcoin blockchain has been performing at its best, with occasional on-chain fee increases due to congestion. Instead, Ethereum, the second largest cryptocurrency network, is struggling with congestion.
On January 20, the average transaction fee on the Bitcoin blockchain was $1.132, down 17% from a year ago. Meanwhile, the average transaction fee in Ethereum is $0.6066, which is 82% lower than the same period in 2022.
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