BTC Deployment on EVM Chains Surpasses 234K as Cross-Chain Demand Grows

Bitcoin is increasingly moving beyond its role as a store of value and finding its way into the world of decentralized finance (DeFi). Per data from blockchain analytics firm IntoTheBlock, more than 234,000 BTC are now deployed on EVM-compatible blockchains like Ethereum, Avalanche, and BNB Chain. According to the platform, this surge reflects a growing appetite among Bitcoin holders to do more with their BTC than just hold it passively.

“This trend highlights how Bitcoin holders are increasingly turning to DeFi mechanisms, such as Bitcoin staking, to earn a yield on their assets,” the firm stated. 

The Rise in DeFi Adoption

Notably, this metric represents a 10% growth since the beginning of the year. This showcases the growing interest of BTC holders in using Bitcoin within the EVM-based DeFi ecosystem. 

Traditionally viewed as a store of value, Bitcoin exists natively on its own blockchain and does not support smart contracts. To use the asset in DeFi activities, products like wrapped Bitcoin (WBTC) and bridging to other networks are employed. These solutions allow Bitcoin to interact with smart contracts and decentralized applications (dApps) built on Ethereum and other networks.

For context, wrapped bitcoins are tokenized bitcoins backed 1:1 by BTC held in custody or managed by smart contracts. Major crypto exchanges like Coinbase and Kraken have launched these products to facilitate DeFi adoption. Once wrapped, the tokens can be used on EVM chains for a variety of use cases. Some of the use cases include lending, borrowing, yield farming, liquidity provision, and staking. 

Ethereum Dominates 

On-chain data reveals that Ethereum remains the dominant chain for wrapped BTC, with WBTC being the most widely used token. Additionally, other EVM chains like Avalanche and BNB Chain are also emerging as strong competitors. These networks provide additional options for Bitcoin holders looking to deploy their assets in DeFi.

Furthermore, with the introduction of Bitcoin staking protocols like Babylon, BTC holders are starting to see staking as a viable way to earn yield in DeFi without needing to convert or sell their holdings. Overall, the increase in BTC deployed across EVM chains signals the potential for greater liquidity within the DeFi ecosystem. 

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