Bitcoin’s supply has shifted to new investment opportunities and the Ethereum network
In a weekly report, Arcane Research has shared the key Bitcoin trends for the year 2021. One of them is the supply shift toward the Ethereum network.
Wrapped BTC and Ethereum Network
Thanks to the creation of packaging technology, Bitcoin was able to be part of the Ethereum network despite operating on a completely different blockchain. Thanks to technology, users are able to make the process of trading and trading with BTC much easier.
Wrapped BTC is fully tied to the original asset and does not require any technical knowledge on the part of the user. The asset became even more popular in 2021 as traders shifted almost 1% of Bitcoin’s circulating supply to the Ethereum network.
Corporate treasury
Businesses and corporations have decided to gain even more exposure to Bitcoin than before with a 0.5% increase in cryptocurrency balances on the balance sheets of various companies.
Due to its impressive performance in 2021, Bitcoin has become one of the most pleasing assets to hold onto for both private investors and companies. In 2021, even more companies, like Microstrategy, stated they are either already holding or are just buying into the decentralized asset.
In addition to private companies, some countries have also decided to either become investors, such as in El Salvador, or to hold the confiscated funds for profit.
Exchange balances and investment products
With the further development of the decentralized finance sector, the exchange has become more than just a place to exchange digital assets into fiat. Some exchanges are currently offering their lending, borrowing and investing solutions to private investors.
Financial products on exchanges welcomed 0.69% of Bitcoin’s circulating supply, while hot-swap wallets “lost” 1.19% of supply, which is linked to performance. cryptocurrency prices in 2021.
