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Blockstream’s expansion of Liquid federation has made LBTC (Liquid Bitcoin) to slow down its adoptions

  • Six important crypto firms have agreed to join the liquid federation governed by liquid
  • The liquid federation now comprises a total of 35 strong members of exchanges and financial desks
  • Two crypto coins Tether and Stably are all set to launch their stable coins on platforms like Liquid federation

The Blockchain developing company namely ‘Blockstream’ has decided to amalgamate six additional members who will help in building a strong foundation for Liquid. Starting from Bitcoin web wallets like Coinos, crypto custodian komainu toSeveral network privacy firms, all have equal contributions which can take Bitcoin and its assets to a new level.

Liquid Network

Liquid began its expansion in 2015. Then it became a Bitcoin sidechain, specially designed to accelerate the Bitcoin transactions and its settlement process for exchanging cryptocurrency. Since its inception, Liquid has shown full loyalty towards LBTC (Liquid Bitcoin) tokens that are attached with Bitcoin. As the report suggests, currently Liquid is able to process 450 transactions out of 2756 circulating LBTC Bitcoin tokens. 

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Consisting of 35 members, Liquid provides services for cryptocurrency exchanges like Bitfinex, OKEx, BitMEX, etc. These hedge funder firms are like building blocks to build Liquid’s empire for Bitcoin. Liquid has also joined ‘The Rock Trading firm’ to normalize L-BTC (Liquid Bitcoin) deposits and withdrawals for customers.

Roadblocks for Liquid

There are always pros and cons for everything. As Liquid and its firms are growing stronger by doing the much needed integrations, cryptocurrency like Ethereum can create a major challenge for Liquid and also Bitcoin. As per the report, Liquid and TVL’s volume is constantly being hit by Ethereum and its booming side in the third quarter of 2020. This is creating a demand for Ethereum as a potential investment, more than a saturated market for Bitcoin to join hands with. 

There are more than 1 million Tokenized Bitcoins over Ethereum which has a market capitalization of 5 million USD. So, with increasing supply of Bitcoin tokens for Ethereum being used by potential investors, several problems can arise for Liquid Bitcoin. Lightning Network can also suffer due to over used Bitcoin Tokens over Ethereum. 

From these type of situations and overall market comparison, investors and people are more aware of the Ethereum network than of Bitcoin. Crypto community is opting to migrate towards Bitcoin due to an over saturated market and increased demand. But due to increasing potential craze over cryptocurrency, people are taking less risks and have started to create new revolution with other cryptocurrency.  

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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