Bitcoin (BTC) valued at over $ 1 billion has now been released for access to decentralized financial protocols (DeFi) on the Ethereum network (ETH). This corresponds to the total value (TVL) locked in DeFi less than four months ago.
According to DeFi Pulse, approximately $ 98,300 BTC worth $ 1.05 billion has been tokenized using protocols other than Blockstream’s Lightning Network, which is more than 12% of DeFi’s combined sector capitalization of $ 8. 57 billion.
The milestone shows the growing popularity of ETH-based protocols for generating passive returns among Bitcoin hodlers. In early June, the entire DeFi sector was only $ 1.05 billion TVL, of which $ 47.5 million, or 4.7% Bitcoin, suggests that the portion of DeFi capitalization represented by BTC was three and a half months long increased by 150%.
In contrast, the Lightning Network has only attracted 1,100 bitcoins worth $ 11.5 million since its launch in March 2018.
In June, the vast majority of BTC in the DeFi sector took the form of Wrapped Bitcoin (WBTC). However, The introduction of Ren and RenBTC’s more decentralized virtual machine (VM) as well as basic tokenization protocols like PieDAO’s BTC ++ this year has accelerated the expansion from Bitcoin to DeFi.
Bitcoin tokenization protocols allow users to lock their Bitcoin and mint a corresponding ERC-20 token so that the value represented by a user’s Bitcoin holding can interact with smart contracts on the Ethereum network.
While WBTC remains the top-rated tokenization protocol for blocked BTC after gaining nearly $ 605.5 million worth of bitcoin as of late November 2018, Ren’s VM has 21,500 bitcoin worth US $ 230 million since its inception -Dollars tokenized. in May of this year.
While both protocols have more than doubled the amount of Bitcoin that has been blocked for 30 days, WBTC continues to attract a higher volume of BTC than Ren. WBTC grows from around 28,360 BTC to 56,850 BTC and RenBTC grows from 10,000 BTC to 21,510 in one month. .
In the past 90 days, both projects have grown by more than 850%. As of June 19, WBTC was only 5,839 BTC and Ren was only 155 BTC.
Curve Finance is the highest rated income generation protocol for BTC with 27,600 bitcoins worth 295 million. followed by Aave with 17,800 BTC valued at $ 190.5 million and Balancer with 9,500 BTC valued at $ 101.6 million. Together, the three protocols have attracted more than half of all Bitcoin tokens.
However, with only 0.47% of Bitcoin supply being tokenized, there is still significant value that is likely to migrate from Bitcoin to DeFi in the months and years to come.