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Blockstream has added six additional members to the federation that controls Liquid, the company’s Bitcoin side chain for the inter-exchange settlement network.

The six new Liquid Federation members include Bitcoin web wallet Coinos, crypto custodian Komainu, network privacy firm Nym, blockchain development firm Vulpem Ventures, broker Watchdog Capital, and Liquid Network settlement platform Sideswap.

Liquid was announced in late 2015 as a Bitcoin side chain designed to accelerate the settlement of Bitcoin transactions for crypto exchanges. Liquid supports LBTC tokens associated with Bitcoin. According to official data, there are currently 2,756 LBTC in circulation, with the sidechain processing approximately 540 transactions per day.

The Liquid Federation now includes 59 members, including top cryptocurrency exchanges Bitfinex, OKEx, BitMEX and Huobi, investment product provider CoinShares, and hardware wallet company Ledger. Despite growing membership in the federation, Liquid’s volume and TVL are eclipsed by tokenized Bitcoin on Ethereum – with the Q3 2020 DeFi boom stimulating significant demand for tokenized BTC.

According to btconethereum.com, there are now more than 148,000 BTC tokenized on the Ethereum network, together worth more than $ 5 billion. As such, the value of Bitcoin on Liquid equals only 1.86% of all Bitcoin tokenized on Ethereum.

Since much of the tokenized BTC offering on Ethereum is used by retail investors to access DeFi protocols, direct comparisons to LBTC can be problematic due to the small pool of users and uses for Liquid tokens.

While Blockstream are Lightning Network sidechain for fast peer-to-peer transactions, Lightning’s adoption over the past month has also been overshadowed by Ethereum-powered BTC tokens.

According to. Only 1,060 BTC are locked on the Lightning Network bitcoinvisiuals.com – equal to less than one hundredth of the Bitcoin locked to Ethereum.

With Ethereum-powered BTC tokens representing 40 times the combined TVL of Blockstream’s two flagship sidechains, it appears that much of the crypto community is choosing to use the Ethereum network through Blockstream’s centralized sidechains to speed and scalability of BTC.

Three quarters of the tokenized BTC on Ethereum is locked in the Packaged Bitcoin protocol, followed by HBTC at 12% and renBTC at nearly 9%.