Wrapped Bitcoin is up incrementally today to $54,443.48 (WBTC/USD- an improvement over its performance late last month. It is enjoying a trade volume of over $473 million over the last 24 hours. That trade volume has increased more than 20% over the same period, but not everything is looking rosy for Wrapped Bitcoin

This crypto offers a way for Bitcoin (BTC) to be traded on the Ethereum (ETH) network, since most Bitcoin is traded on a centralized platform. The decentralized Ethereum network is accessible to Bitcoin holders through Wrapped Bitcoin, but the process to trade between Bitcoin and Wrapped Bitcoin with another currency on the Ethereum network can be complicated. Bitcoin has to be tokenized and turned into an ERC-20 version in order to be utilized on the Ethereum network.

Bifrost Proposes a Change

Because of this cumbersome process, not a lot of Bitcoin is traded on Ethereum- only about 1%. That could change in the near future with the access offered by the BiFi platform. This Bifrost platform connects the Ethereum and Bitcoin networks very closely. It uses native, real Bitcoin in an operating method that is similar to Aave.

The developers behind the BiFi platform said that it’s being created with security in mind first of all. Cryptographic proofs and multi-chain technology work together to make this is a very secure trading platform, and network users can take Bitcoin tokens to borrow ERC-20 assets, completely cutting out the middleman of Wrapped Bitcoin.

This platform directly connects the decentralized and centralized networks, and this could bring in a ton of cryptocurrency users into Ethereum. Those users can sidestep Wrapped Bitcoin entirely, making it nearly redundant.

If that happens, we could see Wrapped Bitcoin’s trade volume plummet considerably. Whether Bifrost becomes mainstream enough to completely eliminate Wrapped Bitcoin is another question entirely. It remains to be seen how well Bifrost will work in connecting Ethereum in Bitcoin as well as how widely it will be used. If there’s no mainstream acceptance of this new platform, Wrapped Bitcoin will remain perfectly safe for the foreseeable future.

Bifrost’s developers have plans for tiered rollouts with their platform, including a multi-chain wallet to be released later this year. They also intend to expand Bifrost to additional networks through next year.