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The latest DeFi bull-cycle has pushed the entire 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 almost $1.5 billion, of which WBTC at present represents one-third.
Wrapped Bitcoin is now the fifth-largest DeFi protocol when it comes to TVL, representing practically 10% of the whole 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 various Ethereum-powered decentralized finance (DeFi) ecosystem utilizing it as collateral.
Within the first half of 2020, WBTC’s TVL grew from $4 million to $36 million, demonstrating the acute surge in demand for DeFi in the course of 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 Could.
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 lately retracing to Could’s sub-$1 million ranges after briefly spiking in July.
The A16z-backed Hold Community has additionally missed out on the spoils of the latest DeFi frenzy, with the embattled tBTC protocol coming underneath hearth lately for liquidating Ether belonging to all customers in a gaggle who see a single signer go offline.
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