The concept of tokenized Bitcoin on the Ethereum blockchain has proven popular over the past few years. Tokenized BTC lets users access DApps and Defi solutions. Unsurprisingly, wBTC remains the market leader, although hBTC seems to note decent growth too.
Demand For Tokenized Bitcoin Remains Tangible
While the concept of tokenized Bitcoin on the Ethereum blockchain may not make sense to everyone, it has various purposes. For example, Bitcoin cannot be traded on Ethereum directly. That also means one can’t use it for native dApps, DeFi solutions, and decentralized exchanges. Through tokenized Bitcoin, suers can access all of these features, even if it remains a relative niche market, for now.
Even so, the amount of tokenized Bitcoin on Ethereum notes substantial growth. The balances have doubled from 100,000 BTC to over 200,000 BTC in a matter of a year. Moreover, that growth now appears to accelerate, confirming the demand for these assets isn’t slowing down. A surprising development, as few people actively discuss the use of Bitcoin on Ethereum these days.
What is even more crucial is figuring out which ‘version” of tokenized Bitcoin one should choose. Over half a dozen issuers of assets such as tBTC, imBTC, wBTC, hBTC, renBTC, and others exist today. All of these assets represent the same value, as BTC reserves back them. However, one is more popular than the rest, which isn’t too surprising.
wBTC Continues to dominate the tokenized Bitcoin landscape. It has a market share of 75.9%, which represents 205,921 Bitcoin. In second place is the hBTC supply of 39,906, followed by renBTC at 15,823. There are significant gaps in these rankings, although that is normal. wBTC Is the “oldest” version of tokenized BTC, and it has not relinquished that industry-leading position ever since.
Overall Momentum Keeps Growing
Contrary to what some may expect, the overall demand for tokenized Bitcoin isn’t slowing down just yet. Instead, it seems as if the momentum has picked up since early 2021. All of the wrapped versions of BTC note an increase in balances, although some are far less outspoken than others. wBTC, renBTC, and hBTC note the most prominent increase in activity.
It will be exciting to see how things will evolve for tokenized Bitcoin assets. While this remains a relatively small market, it has tremendous potential for many people for the time being. More competitors coming to market would be rather interesting, although it remains unclear if there is sufficient demand for it.