Blockstream has added six more members to the consortium that runs Liquid, the Bitcoin side-chain company of the mutual exchange network.

The six new members of Liquid Consortium include Bitcoin Wallet Coinos, Cryptocurrency Komainu, Network Protection Corporation Nym, blockchain developer Vulpem Ventures, broker Watchdog Capital, and settlement platform Liquid Network Sideswap.

At the end of 2015, Liquid was announced as a Bitcoin side chain designed to accelerate the settlement of Bitcoin transactions for cryptocurrency exchanges. Liquid supports LBTC tokens associated with Bitcoin. According to official numbers, there are currently 2,756 LBTC in circulation, with the side chain processing around 540 transactions every day.

Liquid Consortium currently has 59 members, including leading crypto exchanges Bitfinex, OKEx, BitMEX and Huobi, investment product provider CoinShares, and hardware wallet company Ledger. Despite expanding membership of the union, Liquid and TVL volumes are lagging behind Bitcoin tokens on Ethereum – DeFi’s boom in the third quarter of 2020 spurred massive demand for token BTC.

According to btconethereum.com, there are now over 148,000 token BTCs on the Ethereum network, totaling more than $ 5 billion. Thus, the value of Bitcoins on Liquid is only 1.86% of all Bitcoin Premiums on Ethereum.

Since most of the BTC encoded on Ethereum is used by retail investors to access DeFi protocols, a direct comparison with LBTC could be problematic due to the small user size and application of floating tokens.

While Blockstream has benefited from the Lightning Network side chain for fast peer-to-peer transactions, the adoption of Lightning has been overshadowed by Ethereum-based BTC tokens over the past month.

According to bitcoinvisiuals.com, only 1060 BTC has been blocked on the Lightning Network, which is less than one in a hundred bitcoins banned on Ethereum.

With Ethereum-based BTC tokens 40 times the combined TVL of Blockstream’s major sidechains, it appears that a large portion of the crypto community is choosing to use the Ethereum network rather than the centralized Blockstream sidechains to improve BTC’s speed and scalability.

Three quarters of Ethereum’s most prestigious Bitcoins are locked in the encapsulated Bitcoin protocol, followed by HBTC at 12% and renBTC at nearly 9%.

Source: CoinTelegraph

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