The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
The Daily Hodl
No Result
View All Result

Analyst Says Ethereum Is Bitcoin’s Long-Awaited Second Layer, DeFi Revolution Bullish for Both Assets

by Daily Hodl Staff
September 18, 2020
in Bitcoin, Ethereum

DeFi analyst David Hoffman thinks the rise of Bitcoin-pegged assets on Ethereum is a bullish development for both Ethereum and BTC.

Crypto podcaster Luke Martin focused two of his shows this week on decentralized finance, noting that there’s now about $1 billion worth of tokenized BTC now living on Ethereum.

Hoffman, the chief of operations at RealT, a tokenized real estate platform, tells Martin that Wrapped Bitcoin will provide risk-averse Bitcoiners an opportunity to profit off their holdings.

“Bitcoiners as a culture are generally much more risk averse than what we see in the shenanigans in DeFi right now. DeFi and Ethereum are all about experimentation and pushing the boundaries, seeing what we can really do, and Bitcoiners are really scared to risk their Bitcoin, because one of the value propositions of Bitcoin, built into the hard cap of Bitcoin, is ‘don’t lose it.'” 

But Hoffman says that Bitcoin can become financialized on Ethereum and integrated with decentralized finance (DeFi) protocols, providing those conservative Bitcoiners profit opportunities.

“With WBTC, you can submit your BTC into MakerDAO or Compound, and then you can draw debt based off of that, and so this is really advantageous for people who don’t want a taxable event on their Bitcoin, but they do want to leverage some liquidity or some of that value in that Bitcoin.”

Hoffman notes that Bitcoin holders can take the next step with Compound, which offers the ability to lend out Wrapped Bitcoin to others who will pay interest denominated in WBTC. He also notes that it’s “totally on the cards” that people will be able to yield farm with Wrapped Bitcoin in the future.

New podcast with @TrustlessState is LIVE!

One billion dollars of tokenized Bitcoin lives on Ethereum, and it's probably a good idea to learn about it before the next billion gets there.

Lots of alpha in here so listen, subscribe, share:https://t.co/TCP5lchfSy

— Luke Martin (@VentureCoinist) September 16, 2020

Hoffman acknowledges that using BTC on Ethereum is currently more risky than putting Bitcoin in the crypto wealth management firm BlockFi, many Bitcoiners’ preferred method. However, he believes that in the future, it will be equally or even less risky to put Bitcoin on Ethereum, noting that BlockFi has know-your-customer (KYC) requirements.

Overall, the RealT executive thinks tokenized Bitcoin is good for the values of both BTC and ETH.

“I think Bitcoin on Ethereum is bullish for Bitcoin because that’s a Bitcoin supply sink. It’s also bullish for Ethereum because economic activity is inherently bullish [for] Ethereum. It’s bullish [for] both.”

He also thinks Ethereum is Bitcoin’s long-awaited second layer.

“Ethereum is Bitcoin’s L2 that [Bitcoiners] wish that or think that they are going to get. As soon as they just come to terms with the fact that Ethereum is the L2 that they’ve been hoping for and just come to terms with the fact that all of their hopes and dreams about Bitcoin’s L2 are going to be fulfilled on Ethereum, the easier this is going to be.” 

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured image: Shutterstock[artist’s name]

Submit a Press Release

Industry Announcements

  • PlayW3 Unleashes ‘Be The Boss’: A New On-Chain Business Model That Turns Creators Into Owners — $320,000+ Already Paid Out
    July 17, 2025
  • Streamex (BSGM) CEO Henry McPhie Highlights BSGM Merger and RWA Tokenization Strategy in Live TV Interview
    July 17, 2025
  • Numerai Announces $1M Strategic Buyback of NMR
    July 17, 2025
  • Bit Origin Secures $500 Million Equity and Debt Facilities to Launch Dogecoin Treasury
    July 17, 2025
  • Supra Unveils Real-Time Macro-Economic Data Feeds to Enhance Onchain Trading
    July 17, 2025
  • Aster Launches 24/7 Stock Perpetual Contracts Trading With Exposure to US Equities
    July 16, 2025
  • The Sandbox Launches Largest LAND Sale to Date on GBM Auctions
    July 16, 2025
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$118,672.80
$118,672.80
0.17%
Ethereum
$3,404.28
$3,404.28
4.88%
BNB
$718.10
$718.10
2.53%
Solana
$173.92
$173.92
2.33%
XRP
$3.25
$3.25
8.85%

Spotlight

  • Best-Selling Author Ric Edelman Doubles Down on $500,000 Bitcoin (BTC) Price Target As ‘Smart’ Investors Pile In
    July 10, 2025
  • Crypto Analyst Says One Top-10 Altcoin’s Chart Looks ‘Disgustingly Good,’ Updates Outlook on Bitcoin and Ethereum
    July 10, 2025
  • SEC Commissioner Peirce Declares Tokenized Securities Under the Purview of the Regulator
    July 10, 2025
  • Trader Predicts Mid-Cap Altcoin Could Explode 200%+ by August, Maps Path Forward for Dogecoin and Solana
    July 10, 2025
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Altcoins • Futuremash • Financeflux •
Blockchain • Regulators • Scams •
HodlX • Press Releases

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2025 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise

© 2025 The Daily Hodl