Many cryptocurrency enthusiasts have shown an interest in using Bitcoin on Ethereum. So much even that nearly 25.000 BTC has now been tokenized. Although Wrapped Bitcoin is still the dominant force, other options start to become more popular too.
More Tokenized Bitcoin on Ethereum
Given the lack of decentralized finance solutions with native Bitcoin support, there aren’t that many options to explore. For Bitcoin holders, the best option is to explore tokenized versions of BTC. By far, the most popular option is Wrapped Bitcoin, which recently surpassed the $175 million market cap.
Speaking of WBTC, it has nearly 20,000 BTC in value locked today. The ongoing growth of tokenized BTC cannot be ignored any longer. It is a great way to access everything that Ethereum has to offer. This is not the only token capable of doing so, but it is clearly the most popular option.
Other projects providing exposure to tokenized Bitcoin are also gaining traction. That is remarkable, as it highlights a key market to explore. Ethereum has a lot to offer to BTC holders, especially in terms of earning passive revenue. Although just 0.66% of the entire BTC supply is now tokenized on Ethereum, the numbers keep growing month over month.
Where is the WBTC Going?
Contrary to what some people may think, Wrapped Bitcoin isn’t necessarily used for trading. While it is supported by decentralized exchanges, or DEXes, it is not a volume “machine”, so to speak. Some people trade WBTC on Balancer, Uniswap, BiKi, or other platforms. However, its trading volume rarely surpassed $5 million a day.
The main draw for WBTC comes in the form of DeFi platforms. Wrapped Bitcoin is often used in conjunction with Compound, Aave, Balancer, and other platforms. The “other” category on the dashboard is especially well-represented. As the competition among different types of tokenized Bitcoin assets heats up, the dominance of WBTC may be threatened.
Exploring the Alternative Options
Looking at the supply of tokenized Bitcoin assets, there are a few options gaining traction. RenBTC is by far the biggest competitor to WBTC, although it has “just” 2.502 Bitcoin locked up. sBTC, on the other hand, comes in third place with 1,214 BTC. Both of these options represent a market share of 10.1% and 4.91% respectively.
With hBTC and pBTC also making somewhat of an impact, the coming months may see some noteworthy changes. Until a proper Defi solution for Bitcoin comes around, it is likely that tokenized Bitcoin assets will remain of great importance. Which of these tokens will come out on top by the end of 2020, has yet to be determined.