Blockstream expands Liquid Federation, however LBTC adoption stays gradual

Blockstream has added six extra members to the federation that governs Liquid, the agency’s Bitcoin sidechain for inter-exchange settlement community.

The six new Liquid Federation members embody Bitcoin internet pockets Coinos, crypto custodian Komainu, community privateness agency Nym, blockchain improvement firm Vulpem Ventures, dealer Watchdog Capital, and Liquid Community settlement platform Sideswap.

The #LiquidNetwork Federation grows to a complete of 59 with six new members introduced at this time. The six new members are @coinoswallet, Komainu, @nymproject, @side_swap, @vulpemventures, and @WatchdogCapital. https://t.co/QkluG8ivIh pic.twitter.com/CudS30Xyjv

— Liquid Community (@Liquid_BTC) January 11, 2021

Liquid was introduced on the finish of 2015 as a Bitcoin sidechain designed to hurry up Bitcoin transactions settlement for crypto exchanges.

Liquid helps LBTC tokens which can be pegged to Bitcoin. In keeping with official information, there are presently 2,756 circulating LBTC, with the sidechain processing roughly 540 transactions every day.

The Liquid Federation now spans 59 members, together with high cryptocurrency exchanges Bitfinex, OKEx, BitMEX, and Huobi, funding product supplier CoinShares, and {hardware} pockets agency Ledger.

Regardless of the federation’s increasing membership, Liquid’s quantity and TVL is dwarfed by tokenized Bitcoin on Ethereum — with the Q3 2020 DeFi growth driving important demand for tokenized BTC.

In keeping with btconethereum.com, there’s now greater than 148,000 BTC tokenized on the Ethereum community, value greater than $5 billion mixed. As such, the worth of Bitcoin on Liquid is the same as simply 1.86% of the all Bitcoin tokenized on Ethereum.

Whereas the Liquid Community has been designed for exchanges — with Blockstream touting its Lightning Community sidechain for peer-to-peer transactions — Lightning adoption has additionally been overshadowed by the adoption of tokenized BTC on Ethereum.

Only one,060 BTC been locked on the Lightning Community in response to bitcoinvisiuals.com — equating to lower than one-hundredth of the Bitcoin locked on Ethereum.

Three quarters of tokenized BTC on Ethereum is locked within the Wrapped Bitcoin protocol, adopted by HBTC with 12% and renBTC with almost 9%.