Spencer Noon, head of native investment fund DTC Capital, said that by the end of 2021, the total amount of (BTC) held on the blockchain will increase by 20 times.
Noon told his followers on Twitter that the total value of Bitcoin locked in the Decentralized Finance (DeFi) protocol is expected to continue to rise.
“Ethereum now has 131,075 BTC, which is 0.624% of the existing Bitcoin. I predict that by the end of 2021, this number will double by 20 times.”
Noon’s bold prediction was made after DeFi Pulse’s report, which stated that investors have now converted a record 141,683 BTC (worth approximately $1.5 billion) into ERC20 tokens.
Crypto traders are converting BTC into Ethereum tokens, which represent BTC. This move allows them to basically use their Bitcoin to participate in DeFi and utilize decentralized loan protocols, synthetic derivatives, and exchanges.
Although Noon expects more BTC to enter the Ethereum chain, he and others in the field believe that many Bitcoin holders will continue to hold Bitcoin.
Ryan Selkis, founder and CEO of Messari, holds the same view:
“Most of us think that we will never sell most of the bitcoins in case the U.S. dollar plummets. I think 30%-40% of BTC won’t move until the price reaches $100,000.”
Noon responded to Selkis’ views and agreed with his prediction. Although he believes there are signs that more BTC will appear on the DeFi platform, a considerable portion of BTC will remain unchanged for a period of time.
“At first glance, (Selkis)’s statement may seem outrageous-it is not. In the 2017 bull market, the price of BTC rose roughly from less than $1,000 to about $20,000. During this period, it was only 20. % Has changed. It is reasonable to expect a similar situation in the next bull market.”
Image source: pixabay
Author Amy Liu
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