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Wrapped Bitcoin is now Ethereum’s sixth largest token

October 30, 2020

Wrapped Bitcoin (WBTC) hit an all-time high today in terms of market capitalization and number of tokens.

WBTC is the most popular version of tokenized bitcoin for use on the Ethereum network. According to the website, there is currently a record 116,885 WBTC backed by an equal number of BTC held by custodians. WBTC’s market cap now tops $ 1.58 billion.

This makes WBTC the sixth largest Ethereum token by market capitalization. after Crypto.com Coin (CRO), USD Coin (USDC), Chainlink (LINK), BNB (BNB) and in first place Tether USD (USDT).

Wrapped Bitcoin is now Ethereum’s sixth largest token
Wrapped Bitcoin is now Ethereum’s sixth largest token

WBTC rose last week, outperforming Compound Dai (cDAI), OKB (OKB) and Bitfinex’s LEO Token (LEO). WBTC is currently the 18th largest cryptocurrency by total market capitalization.

Wrapped Bitcoin is an ERC-20 token backed 1: 1 by BTC reserves and accounting for 80% of the $ 2 billion BTC on the Ethereum network. To put the growth in perspective, there were only 80,000 Bitcoin tokens valued at just under $ 1 billion in mid-September.

Although BTC’s recent gains are also helping to increase WBTC’s market cap, the main factor behind the sudden growth is the surge in demand. ANDl WBTC is particularly often used in DeFi for high-yield farming among projects with more moderate returns. There are currently more than 164,000 BTC stored in DeFi logs, which is almost 0.85% of the total circulating bitcoin supply.

While the first wrapped bitcoin was minted in January 2019, the token’s daily trading volume did not exceed $ 1 million by the end of July this year. Today WBTC has a regular trading volume of over $ 50 million.

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