Spencer Noon, the head of crypto-native investment fund DTC Capital, says that the total amount of Bitcoin (BTC) held on Ethereum’s blockchain will increase 20x by the close of 2021.
Noon revealed his forecast on Twitter, telling his followers to expect the total value of BTC locked in decentralized finance (DeFi) protocols to keep climbing.
“There are now 131,075 BTC (~$1.5 billion) on Ethereum. That is 0.624% of all bitcoins in existence. I predict we’ll 20x this by the end of 2021.”
Noon’s bold prediction comes in the wake of DeFi Pulse’s report 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-based tokens that represent BTC – a move that allows them to essentially use their Bitcoin to participate in DeFi and take advantage of decentralized lending protocols, synthetic derivatives and exchanges.
Although Noon anticipates that more BTC will move onto Ethereum’s chain, he and others in the field expect many Bitcoin holders to continue hodling.
One such believer is Messari founder and CEO Ryan Selkis who shares his thoughts on the pace at which BTC holders will let go of their supplies.
“I don’t think people appreciate how high the ask is for a big chunk of the Bitcoin supply. Most of us have an ‘I’m never selling this’ amount of Bitcoin in case the dollar collapses. I’d say 30-40% of BTC doesn’t move until $100k++.”
Noon responded to Selkis’ outlook, agreeing with the Messari head’s prediction that, even though he believes there are signs that more BTC will live on DeFi platforms, a significant portion of BTC will remain BTC for some time.
“At first glance [Selkis’] claim might seem outrageous – it’s not. The 2017 bull market saw roughly BTC’s price rise from sub-$1k to ~$20k. During that time, only 20% of the supply moved, which is a decent proxy for selling activity. It’s reasonable to expect a similar [scenario] next bull run.”
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