Wrapped Bitcoin Market Cap Rallied to Exceed $1.58 billion

November 1, 2020 4:14 PM UTC

The number of tokens and market capitalization of major synthetic Bitcoin, Wrapped Bitcoin (WBTC), rallied to hit all-time highs. With a market cap of more than $1.5 billion, WBTC is the most well-known form of synthetic Bitcoin that makes over 80% of the total Bitcoin held on the Ethereum network.

Market analysis shows that after USDC, LINK, BNB, CRO, and USDT, the recent surge of WBTC makes it the sixth-largest Ethereum based token in terms of market cap and the 18th-largest crypto asset by market cap overall.

Wrapped Bitcoin, an ERC20 token pegged by bitcoin at a 1:1 ratio, jumped abruptly in the mid of June 2020. As for now, there is a record total number of 116,885 WBTC, based on data from the official website. The token is designed to induce more liquidity into the network. Moreover, WBTC can easily integrate into the Ethereum network through ETH wallets, DApps, and smart contracts. 

DeFi Locked $2 billion worth of Bitcoin 

As reported earlier, the Ethereum blockchain has more distribution of BTCs than Bitcoin’s own special Lightning Network. Currently, there is over $2 billion worth of BTC held on the Ethereum ecosystem, according to Dune Analytics.

Bitcoiners are actively converting assets to Ethereum based tokens in order to participate in various decentralized finance(DeFi) protocols. For long-term HODLers, DeFi reward incentives and yield farming is an attractive option to earn money on their holdings.

Despite the sharp price downturn from several leading DeFi protocols in recent weeks, investors have locked almost $11 billion worth of crypto into DeFi smart contracts, according to data from metrics site DeFi Pulse.

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