Soon, Bitcoin users will be able to use the cryptocurrency within Avalanche’s DeFi ecosystem, via the Avalanche Bridge.
Smart contract platform Avalanche will integrate support for the Bitcoin network into Avalanche Bridge next quarter, to enable BTC holders to use the cryptocurrency within its DeFi ecosystem.
Bitcoin will join Ethereum among the supported networks on Avalanche Bridge, enabling the blockchain platform to unlock the potential of BTC, currently the industry’s most capitalized cryptocurrency worth over $800.000 billion, within the decentralized finance ecosystem and Web3. Avalanche Bridge will enable Bitcoin holders and stakeholders to transfer their BTC to the Avalanche blockchain to interact with applications and protocols built on this blockchain.
The integration of Bitcoin into Avalanche's blockchain bridge will exponentially grow its DeFi ecosystem, the platform's developers noted. At the same time, Avalanche Bridge will allow users of this cryptocurrency to access various highly scalable and decentralized financial applications and services.
Avalanche developers also indicated that they will support new networks within their bridge infrastructure to further enrich their decentralized finance ecosystem.
It may interest you: Analyst Predicts End of Bitcoin's Four-Year Cycle: What Could It Mean?
Unlocking Bitcoin's potential in DeFi
Nick Mussallem, head of product at Ava Labs, which develops the Avalanche blockchain, has said that the integration of Bitcoin into the Avalanche Bridge will open up a world of even greater possibilities for the cryptocurrency and its users in the decentralized ecosystem.
Furthermore, given the rise of corporations in the DeFi ecosystem, Avalanche wants to contribute to institutional entry and the revolution of digital businesses through solid and reliable assets such as Bitcoin. In this sense, the blockchain will allow institutions that demand high performance to interact with a large-cap cryptocurrency that is highly secure, transparent and has enormous potential as a long-term investment alternative.
Avalanche developers also announced the launch of a wallet called Core later this month, which will natively integrate Avalanche’s blockchain bridge to optimize the user experience and facilitate interaction with existing decentralized applications and protocols on this chain.
Over $43.000 billion in Ethereum assets
Avalanche Bridge was first launched in July 2021. Since then, this blockchain bridge has processed over 243.000 Ethereum-to-Avalanche transactions, amounting to over $43.000 billion worth of ERC-20 assets. Avalanche Bridge is the most popular Ethereum-connected bridge in terms of value locked or TVL, currently exceeding $6.000 billion.
Avalanche, Top 10 in the crypto and DeFi market
With an annual growth of almost 200%, Avalanche (AVAX) is ranked in the Top 10 of the main cryptocurrencies in the market, with a capitalization of more than 22.000 million at the time of writing. As a DeFi ecosystem, Avalanche is the fourth largest blockchain by liquidity, with a total of 10.800 million locked within the contracts of their decentralized protocols.
At press time, AVAX, Avalanche’s native cryptocurrency, is trading at $84 per unit. At the end of November 2021, this cryptocurrency reached an all-time high of $145. Currently, AVAX has appreciated by almost 20% weekly following the launch of Avalanche Multiverse.
Continue reading: Terra and Cardano hit new all-time highs in DeFi this year
