As Wrapped Bitcoin approaches 189,000 BTC, the dominant form of BTC on Ethereum now accounts for about 1% of the total supply of the cryptocurrency.
Last June the total supply of WBTC was only around 4,000 coins, and today it is 47x. The huge development has made the token the most popular form of bitcoin on the Ethereum blockchain.
WBTC touches the 1% mark | Source: Arcane Research
In total, approximately 240,000 BTC have been tokenized in the Ethereum protocol, with WBTC in 80% of the supply.
Why is WBTC needed?
Tokenized BTC is becoming increasingly popular as the bitcoin blockchain lacks some functionality. Ethereum does not.
As the Ethereum DeFi ecosystem is highly attractive, it is not surprising that investors are looking to get their hands on some of these rewards.
WBTC is not the only BTC token on Ethereum. HBTC and RENBTC are some other examples. However, only WBTC is seeing such a huge increase.
Below is a chart that visualizes the differences between WBTC and other tokens:
WBTC runs away from the rest | Source: Dune Analytics
As can be seen from the chart, competition for the coin is largely stable, and there is little in circulation, accounting for only 20% of the total BTC supply on Ethereum.
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BadgerDAO is a decentralized autonomous organization that aims to build the products and infrastructure needed to bring bitcoin collateral For other blockchains.
BadgerDAO has played a vital role in elevating Wrapped Bitcoin above its competition. The platform currently has $632 million tokens locked in.
There are a total of 13 vaults (called “sets”) on the website where you can deposit your tokens. A lot of these sets are liquidity pairs of WBTC and some other tokens. As a natural consequence, not all price closes below the wrapped token.
Nevertheless, there is a WBTC-only set up that is powered by year finance. The vault is now the largest vault on the platform with approximately $200 million worth of tokens stored.
Badger offers quite low price-to-earning ratio | Source: BadgerDAO
The above chart is from the BadgerDAO report which shows that they have the lowest price-to-earnings ratio as compared to other DeFi businesses.
Related Reading | Top 10 DeFi Projects in Q2 2021
Over the past 30 days, the cryptocurrency has lost 14% in value.
However, the general trend has changed so far in this last week of June. Below is a chart 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 voyager digital survey87% of respondents plan to buy more cryptocurrencies in the coming months. 7 out of 10 respondents also believe that the market sentiment is bullish in the next three months.
However, other investors prefer Rich Bernstein Looks like we are looking at a bearish market.