As Wrapped Bitcoin approaches 189,000 BTC, the leading form of BTC on Ethereum now accounts for nearly 1% of the total supply of the cryptocurrency.
The total supply at WBTC was only around 4,000 coins last June, today it is 47 times as much. The gigantic growth has made the token the most popular form of Bitcoin on the Ethereum blockchain.
WBTC touches the 1% mark | Source: Arcane Research
In total, around 240,000 BTC have been tokenized in Ethereum protocols, of which 80% of the offer consists of WBTC.
Why the need for WBTC?
Tokenized BTC is growing in popularity as the Bitcoin blockchain lacks some features that Ethereum doesn’t offer.
With the Ethereum DeFi ecosystem being very lucrative, it’s not surprising that investors are looking for some of these returns.
WBTC isn’t the only BTC token on Ethereum. HBTC and RENBTC are some of the other examples. However, only WBTC has seen such massive growth.
Below is a diagram that visualizes the difference between WBTC and other tokens:
WBTC runs away from the rest | Source: Dune Analytics
As can be seen from the graph, the token’s competition is largely stagnant and drastically less in circulation, accounting for only 20% of the total BTC supply on Ethereum.
Related reading | Data protection: the future of DeFi
BadgerDAO is a decentralized autonomous organization that aims to build the products and infrastructure necessary to run Bitcoin as a security to other blockchains.
BadgerDAO has played an important role in the rise of Wrapped Bitcoin over its competition. The platform currently has tokens valued at $ 632 million.
The website has a total of 13 safes (so-called “sets”) in which you can store your tokens. Many of these sets are liquidity pairs of WBTC and a few other tokens. As a natural consequence, the entire value under the packaged token is not blocked.
Nonetheless, there is a pure WBTC set operated by Yearn Finance. The vault is now the largest on the platform with around $ 200 million tokens on file.
Badger offers quite low price-to-earning ratio | Source: BadgerDAO
The graph above is from a BadgerDAO report that shows they have one of the lowest price-to-earnings ratios compared to any other DeFI company.
Related reading | Top 10 DeFi projects in the second quarter of 2021
In the past 30 days, the value of the cryptocurrency has fallen by 14%.
However, the general trend seems to have turned upwards so far in the last week of June. Below is a graph showing the variation in the value of the cryptocurrency:
BTC seems to be on a slight upward trend | Source: BTCUSD on TradingView
According to a survey by Voyager Digital, 87% of respondents plan to buy more cryptocurrency in the coming months. 7 out of 10 respondents also believe that market sentiment is optimistic for the next three months.
However, other investors like Rich Bernstein believe that we are looking at a bear market.