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Wrapped Bitcoin is now Ethereum’s 6th Largest Token

Wrapped Bitcoin is now Ethereum's 6th Largest Token

Wrapped Bitcoin (WBTC) reached all-time highs at the moment by way of market capitalization and variety of tokens.

WBTC is the preferred model of Bitcoin tokenized to be used on the Ethereum community. In accordance with the official web site, there at present is a report complete of 116,885 WBTC, backed by an equal variety of BTC held by custodians. The market cap of WBTC now tops $1.58 billion.

This makes WBTC Ethereum’s sixth-largest token by market cap, after Crypto.com Coin (CRO), USD Coin (USDC), Chainlink (LINK), BNB (BNB), and at primary, Tether USD (USDT).

WBTC moved up the rankings prior to now week to surpass Compound Dai (cDAI), OKB (OKB) and Bitfinex’s LEO Token (LEO). WBTC is at present the 18th-largest cryptocurrency by market cap general.

An ERC-20 token backed 1:1 by BTC reserves, Wrapped Bitcoin accounts for 80% % of the $2 billion price of BTC on the Ethereum community. To place the expansion into perspective, in mid-September, there was solely 80,000 tokenized Bitcoin, price slightly below $1 billion.

Though latest beneficial properties made by BTC additionally contribute to the rising market cap of WBTC, the first issue propelling its sudden progress is rising demand. WBTC is used extensively in DeFi for yield farming, particularly amongst initiatives with extra reasonable yields. There may be now greater than 164,000 BTC locked up in DeFi protocols, which equates to about 0.85% of Bitcoin’s whole circulating provide.

Whereas the primary Wrapped Bitcoin was minted again in January 2019, day by day buying and selling quantity for the token didn’t surpass $1 million till late July of this 12 months. As we speak, WBTC recurrently sees buying and selling quantity above $50 million.

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