Tokenized Bitcoin is booming, with the rising demand from DeFi mixed with BTC’s latest meteoric worth rise has resulted in three Bitcoin tokenizati
Tokenized Bitcoin is booming, with the rising demand from DeFi mixed with BTC’s latest meteoric worth rise has resulted in three Bitcoin tokenization protocols rating among the many 70 largest crypto markets.
In line with widespread market information aggregators CoinGecko and CoinMarketCap, Wrapped Bitcoin (WBTC) presently ranks because the 13th-largest market boasting a capitalization of $4.04 billion, with roughly 0.6% of Bitcoin’s provide presently locked within the protocol. Huobi BTC (HBTC) ranks 56th with a market cap of $660 million, adopted by the 63rd-ranked renBTC (RENBTC) with a capitalization of $510 million.
Nevertheless, the emergence of Bitcoin (BTC) tokenization protocols as top-ranked crypto markets is problematic for information aggregators because it dangers double-counting a portion of Bitcoin’s provide when estimating the full market capitalization of the crypto sector.
On the time of publication, WBC, HBTC, and RENBTC symbolize greater than 1.4% of the mixed crypto capitalization excluding Bitcoin, in accordance with bothCoinGecko and CoinMarketCap.
With many analysts anticipating Bitcoin to proceed pushing into new all-time highs, and the DeFi sector’s urge for food for tokenized BTC rising considerably in latest months, the share of crypto capitalization represented by Bitcoin tokenization companies is more likely to maintain increasing.
Talking to Cointelegraph, CoinGecko COO and co-founder Bobby Ong confirmed that “the tokenized BTC market capitalization […] is included within the complete cryptocurrency market capitalization calculation” supplied by his firm. He added:
“We’re conscious of the double-counting concern and have an inside to-do to attempt to right for this concern […] This was a phenomenon that has grow to be extra prevalent previously 12 months as an increasing number of tokenized property are created on Ethereum. We hope to have an answer for this out quickly.”
Bitcoin presently represents greater than 65% of the mixed crypto capitalization.
Cointelegraph contacted CoinMarketCap for remark, however didn’t obtain a response as of press time.