Bitcoin Continues to Flow Into DeFi Despite Recent Price Retracement

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As decentralized finance (DeFi) continues to grow, the Ethereum network has seen significant growth as well, indicated by increased network activity. Bitcoin is not left out of this growth as the total number of bitcoins tokenized on Ethereum continues to increase as well. Data from Dune Analytics and Glassnode suggests that the BTC net inflows onto DeFi increased by 10% in September despite the recent price retracement.

The data also reveals that the net BTC inflows into DeFi are roughly equal to the net outflows from centralized finance (CeFi). This is hardly surprising as a significant amount of Bitcoin has been moved to the Ethereum network this year. In July alone, $96 million worth of BTC was moved to the Ethereum blockchain. Since then, BTC’s total net outflow from CeFi is now roughly $2 billion while total BTC inflow into DeFi is about $1.9 billion.

via Twitter

Despite this huge inflow, a report shows that as September 8th, only 0.4% of Bitcoin’s total supply has been tokenized on the Ethereum blockchain with a total of 72,000 BTC. This means there is room for more inflow into DeFi while CeFi continues to decrease.

A lot more growth has been recorded since then, however. According to data aggregator DeFi Pulse, the total number of Bitcoin locked in DeFi has increased to over 117,000 at time of writing, up from 90,766. Although the value fluctuates, this increase represents a 28.9% surge within two weeks.

Meanwhile, DeFi Pulse has reported that a bug recently affected the reporting of total value locked (TVL) in DeFi. After correcting the issue, the value has been backfilled and shows that the TVL in USD has already exceeded $13 billion, DeFi Pulse wrote on Twitter.

 
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