Wrapped Bitcoin is a tokenized form of BTC on the Ethereum blockchain. It is used to access the various DeFi and smart contract solutions this network has to offer. With over $175 million in WBTC in existence, the token continues to gain popularity.
Wrapped Bitcoin Supply Keeps Rising
The ongoing growth of decentralized finance solutions has proven to be beneficial to many other projects. One such project is Wrapped Bitcoin, which allows BTC holders to tokenize their holdings on the Ethereum blockchain. Doing so has many different benefits. Users can gain access to many different services that do not exist on Bitcoin’s blockchain at this time.
The overall supply of WBTC has noted significant growth in recent weeks. Whereas the supply sat at just 1,297.365 WBTC on June 22nd, it more than quadrupled to 5,818.309 WBTC the day after. Very steep growth all of a sudden. This seems to confirm how Bitcoin holders want to put their assets to work. Tapping into revenue streams can help one grow their portfolio rather easily.
More and more WBTC has been issued ever since. By mid-July, there were nearly 11,400 Wrapped Bitcoin in circulation already. Fast forward to today, and the supply sits at 15,521.271 WBTC.
Even with Bitcoin’s recent price increase, tokenizing the asset on Ethereum continues to gain momentum. Sustaining this level of growth may prove challenging now that the Bitcoin price is approaching $12,000 again.
A Powerful Defi Trend
Regardless of how one feels about Wrapped Bitcoin, the growth cannot be denied. This token remains very popular in the DeFi space as a whole. Looking at projects ranked by total value locked, WBTC still ranks #9. Thanks to this recent supply increase, it has now surpassed the $175 million market cap.
Compared to the Lightning Network, the gap continues to wide.m There is a lot more Bitcoin wrapped on Ethereum than there is in Lightning Network payment channels.
More specifically, the LN has a total value locked of $11.4 million. That value doesn’t have to be tokenized first to access these services, unlike WBTC. A very peculiar difference that continues to spark debates among enthusiasts.
Interesting Trading Activity
It has to be said, WBTC is not an asset that is used to trade all that much. With just under $1.1 million in daily trading volume, this asset’s purpose lies somewhere else entirely. Few people know that WBTC can effectively be traded across different platforms, however.
Currently, the top trading pair is WBTC/ETH on Uniswap. It generates the most trading volume as of right now. Some adventurous traders explore WBTC/WETH on Bamboo Relay.
The most “logical” option – WBTC to BTC – is not being explored all that much. An interesting trend, although tokenizing Bitcoin on Ethereum is not difficult. Virtually all major DeFi services allow for such a conversion through their own platform.