Nearly 1% Of Bitcoin Supply Is Now Wrapped In Ethereum

CryptoCurrency

As wrapped Bitcoin hits 189,000 BTC, the dominant form of BTC on Ethereum currently accounts for over 1% of the cryptocurrency’s entire supply.

WBTC’s total supply was only approximately 4,000 coins in June of last year, and it is already 47 times that amount. Because of its explosive growth, the token has become the most popular version of Bitcoin on the Ethereum network.

In all, about 240,000 BTC have been tokenized into Ethereum protocols, with WBTC accounting for 80% of the supply.

Tokenized BTC is gaining popularity since the Bitcoin blockchain lacks some capabilities that the Ethereum blockchain does not.

Given how profitable the Ethereum DeFi ecosystem is, it’s not surprise that investors want a piece of the action.

WBTC is not the only BTC token available on Ethereum. Other examples are HBTC and RENBTC. However, only WBTC has seen such rapid development.

The table below depicts the distinction between WBTC and other tokens:

As can be seen from the graph, the token’s competitiveness is mostly static, and it is in far lower circulation, accounting for just 20% of the entire BTC supply on Ethereum.

BadgerDAO is a decentralized autonomous organization whose mission is to provide the goods and infrastructure required to introduce Bitcoin as collateral to other blockchains.

BadgerDAO has been instrumental in Wrapped Bitcoin’s ascent above its competitors. The network is presently holding $632 million in tokens.

On the website, there are 13 vaults (called “setts”) where you may deposit your tokens. A large number of these setts are liquidity pairings of WBTC and another cryptocurrency. As a result, not all of the value is locked behind the wrapped token.

Nonetheless, Yearn Finance supports a WBTC-only sett. With over $200 million tokens deposited, the vault is currently the largest on the network.

According to the following figure from a BadgerDAO analysis, they have one of the lowest price-to-earning ratios when compared to other DeFI firms.

The cryptocurrency’s value has fallen by 14% in the last 30 days.

However, the overall trend appears to have shifted upward in this last week of June. The figure below depicts the fluctuation of the cryptocurrency’s value:

According to a Voyager Digital poll, 87 percent of respondents want to purchase more cryptocurrencies in the coming months. Seven out of ten respondents anticipate the market will be positive in the next three months.

Other investors, though, like as Rich Bernstein, believe we are in for a bear market.

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