Ethereum Layer 2 Mantle Rolls Out Bitcoin Pegged FBTC, MNT Price Soars 5%

Ethereum Layer 2 network Mantle has introduced FBTC, a 1:1 Bitcoin-pegged asset aimed at increasing the usability of Bitcoin in the DeFi space.

The introduction of FBTC is a strategic decision by Mantle to extend its services to the BTC market and offer BTC holders a way to earn yield on their holdings..

Ethereum Layer 2 Mantle Introduces Bitcoin-Pegged FBTC

According to a press release, FBTC, an asset that is fully backed by Bitcoin on a 1:1 basis has been launched by Mantle, an Ethereum Layer 2 network. Created jointly with Ignition, FBTC helps Bitcoin owners to access the possibilities of earning on different blockchain platforms.

This initiative is a major new venture for Mantle as it extends its asset portfolio beyond Ethereum-based tokens such as $mETH.

1/11 Introducing @FBTC_official 🔥

Incubated by Ignition, $FBTC is a 1:1 pegged $BTC asset designed to “liberate the growth power of Bitcoin”.

With $FBTC, holders can explore DeFi yields on their idle Bitcoin holdings across multiple chains — now available on Mantle Network. pic.twitter.com/MtsiEKTysr

— Mantle (@0xMantle) August 14, 2024

Ethereum Layer 2 solutions like Mantle are aimed at solving the existing issues in the BTCFi (Bitcoin Finance) sector including fragmentation of liquidity and bad user experience. The newly launched FBTC is designed to aggregate liquidity across various chains in order to offer a smooth DeFi experience to Bitcoin owners. 

With the help of the Ethereum Layer 2 network, FBTC users are now able to engage in lending, staking, and liquidity provision which were either unavailable or restricted to Bitcoin users.

Details on FBTC and Its Functionality

FBTC is planned to act as a means of connection between Bitcoin and other blockchain-based financial systems, and decentralized finance. The asset is protected via state-of-art cryptographic means such as Multi-Party Computation (MPC) and Threshold Signature Schemes (TSS) . This step guarantee the safe and proper management of the BTC assets within the general blockchain network.

The introduction of FBTC occurs at a time when the DeFi sector is growing at a fast rate, with Bitcoin holders now wanting to get the most out of their coins. Through swapping their BTC to FBTC on Ethereum Layer 2, users get the opportunity to participate in yield-generating activities that increase the value of their Bitcoin assets. 

Consequently, this innovation is expected to lure more BTC holders to the DeFi space, thereby expanding the sector’s footprint even further.

MNT Price Jumps 5%

With the introduction of FBTC, there has been an increase in the value of Mantle’s native token, MNT.

Subsequently, MNT price increased by 5% due to the investors’ trust in the network’s integration into the Bitcoin environment.

Source: Coinglass

On-chain data indicates a significant increase in trading volume, with a 86.25% rise, reaching $10.96 million. Additionally, open interest in MNT derivatives has climbed by 5.12% to $11.15 million, suggesting a bullish sentiment among traders.

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Kelvin Munene Murithi

Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.