Wrapped Bitcoin hits $1b after 900% rise
08 Oct 2020
The recent DeFi (decentralised finance) bull cycle has led to the total value locked (TVL) of Bitcoin tokenization protocol Wrapped BTC (WBTC) to rise by 900% to exceed $1b.
This is just four weeks after the TVL of all Bitcoin tokenized on Ethereum topped $1b for the first in history, reports Cointelegraph.
As it stands, the TVL of tokenized Bitcoin is almost $1.5b, with WBTC representing a third of that.
Wrapped Bitcoin is the fifth-largest DeFi protocol in regard to total value locked, signifying close to 10% of the whole sector’s locked capital.
The total value locked of Wrapped Bitcoin moved past $100m for the first time at the beginning of July this year.
The Coin telegraph report goes on to add that Wrapped Bitcoin allows users to lock up Bitcoin in exchange for WBTC. This then permits access to the Ethereum-powered DeFi ecosystem using it as collateral.
During the first half of this year, Wrapped Bitcoin’s total value locked increased to $36m from $4m, showing the substantial spike in demand for decentralised finance during Q3.
Furthermore, other Bitcoin tokenization protocols have benefitted from the DeFi bubble. Ren’s VM has locked up over $300m worth of Bitcoin since launching in May.
Over the same timeframe, the price of REN has risen by around 180%, increasing 14% over the last 24 hours after its Coinbase listing.
However, not all tokenization protocols have been able to maintain such a degree of success. As an example, PieDAO’s total value locked recently dropped under $1m after a surge in July.
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