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Wrapped Bitcoin tops $1B after 900% increase in two months

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The latest DeFi bull-cycle has pushed the overall worth locked (TVL) of common Bitcoin (BTC) tokenization protocol Wrapped BTC (WBTC) up by 900% to surpass $1 billion.

The milestone comes 4 weeks after the TVL of all Bitcoin tokenized on Ethereum (ETH) surpassed $1 billion for the primary time . The present TVL of tokenized Bitcoin is sort of $1.5 billion, of which WBTC at present represents one-third.

Wrapped Bitcoin is now the fifth-largest DeFi protocol by way of TVL, representing almost 10% of all the sector’s locked capital. WBTC’s TVL pushed above $100 million for the primary time round July 8.

Wrapped Bitcoin 12-month TVL chart: DeFi Pulse

Wrapped Bitcoin lets customers lock up BTC in trade for WBTC — an ERC-20 token pegged to Bitcoin — which permits BTC holders to entry the varied Ethereum-powered decentralized finance (DeFi) ecosystem utilizing it as collateral.

Within the first half of 2020, WBTC’s TVL grew from $4 million to $36 million, demonstrating the intense surge in demand for DeFi through the third quarter.

The DeFi bubble has additionally benefited different Bitcoin tokenization protocols, with Ren’s (REN) VM locking up greater than $300 million value of BTC since launching on the finish of Might.

RenVM lifetime TVL chart: DeFi Pulse

The value of REN has elevated by roughly 180% over the identical interval, with the token bouncing 14% over the previous 24 hours after itemizing on Coinbase.

Not all tokenization protocols have loved sustained success, with PieDAO’s TVL lately retracing to Might’s sub-$1 million ranges after briefly spiking in July.

The A16z-backed Hold Community has additionally missed out on the spoils of the latest DeFi frenzy, with the embattled tBTC protocol coming underneath fireplace lately for liquidating Ether belonging to all customers in a bunch who see a single signer go offline.




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