Over the past few months, there have been ample discussions regarding WBTC, or Wrapped Bitcoin. What is remarkable is how more people seem interested in Wrapped Ether, or WETH. In fact, more people own WETH Compared to WBTC.
Comparing Wrapped Bitcoin With Wrapped Ether
Depending on whom you pose the question to, it either makes perfect or no sense to wrap existing tokens on another blockchain. Most Bitcoin maximalists think Wrapped Bitcoin is an abomination. At the same time, they can’t ignore how popular WBTC has become. It is used for a wide variety of purposes, including DeFi yield farming and cryptocurrency trading.
According to Etherscan, there are currently 8,151 Ethereum addresses with a balance of WBTC. Moreover, the token has noted over 431,000 transactions since its initial inception. All of these statistics are interesting, considering how there are over 86,472 WBTC in circulation today.
Comparing this to WETH, a very remarkable statistic will become apparent. More than 77,600 addresses hold WETH at this time. It has over 13.7 million transactions to date. More importantly, there are over 7.3 million WETH on the market. All of these statistics are much higher than Wrapped Bitcoin in its current form.
All of this raises a lot of questions. First of all, why is Wrapped Ether so popular, and how come so many people own this asset? Second, why are people tokenizing Ethereum on the …. Ethereum blockchain? It seems counterproductive. Wrapped Bitcoin tokenizes Bitcoin on Ethereum, which makes slightly more sense.
Where are They Traded?
Users actively seeking exposure to either Wrapped Bitcoin or Wrapped Ether have multiple trading platforms to check out.
For WETH, the popular trading markets are found on 0x Protocol, 1Inch, Bamboo Relay, and Kyber Network. It is evident that decentralized exchanges, or DEXes, are the primary recipients and generators of WETH trading volume today.
For Wrapped Bitcoin, things are a bit different. Top platforms include BKEX, Tokenlon Curve.Finance and Uniswap. It seems WBTC is primarily traded against USDT, IBTC, and RENBTC. Remarkable to see more tokenized instances of Bitcoin trading against this particular token.
Keeping all of the above in mind, things certainly have gotten interesting. Both WBTC and WETH seem very popular in their own ways. Whether that is a good or bad thing, is subject to opinions and semantics. There is clearly a market for tokenized assets on Ethereum, even if not everyone agrees with it.