The latest DeFi bull-cycle has pushed the full worth locked (TVL) of fashionable Bitcoin (BTC) tokenization protocol Wrapped BTC (WBTC) up by 900%
The latest DeFi bull-cycle has pushed the full worth locked (TVL) of fashionable Bitcoin (BTC) tokenization protocol Wrapped BTC (WBTC) up by 900% to surpass $1 billion.
The milestone comes 4 weeks after the TVL of all Bitcoin tokenized on Ethereum (ETH) surpassed $1 billion for the primary time . The present TVL of tokenized Bitcoin is sort of $1.5 billion, of which WBTC at present represents one-third.
Wrapped Bitcoin is now the fifth-largest DeFi protocol by way of TVL, representing almost 10% of all the sector’s locked capital. WBTC’s TVL pushed above $100 million for the primary time round July 8.
Wrapped Bitcoin lets customers lock up BTC in alternate for WBTC — an ERC-20 token pegged to Bitcoin — which permits BTC holders to entry the varied Ethereum-powered decentralized finance (DeFi) ecosystem utilizing it as collateral.
Within the first half of 2020, WBTC’s TVL grew from $four million to $36 million, demonstrating the acute surge in demand for DeFi through the third quarter.
The DeFi bubble has additionally benefited different Bitcoin tokenization protocols, with Ren’s (REN) VM locking up greater than $300 million value of BTC since launching on the finish of Might.
The value of REN has elevated by roughly 180% over the identical interval, with the token bouncing 14% over the previous 24 hours after itemizing on Coinbase.
Not all tokenization protocols have loved sustained success, with PieDAO’s TVL just lately retracing to Might’s sub-$1 million ranges after briefly spiking in July.
The A16z-backed Preserve Community has additionally missed out on the spoils of the latest DeFi frenzy, with the embattled tBTC protocol coming beneath hearth just lately for liquidating Ether belonging to all customers in a gaggle who see a single signer go offline.