As the wrapped bitcoin approaches 189,000 BTC, the main form of BTC on Ethereum now accounts for almost 1% of the total cryptocurrency supply.
The total supply of WBTC was only about 4,000 coins in June last year, and now it is 47 times more. Giant growth has made the token the most popular form of bitcoin on the Ethereum blockchain.
WBTC touches the 1% mark | Source: Arcane Research
Overall, about 240,000 BTC have been tokenized on the Ethereum protocols, of which 80% of the supply is WBTC.
Why is WBTC needed?
Tokenized BTC is becoming more and more popular because the Bitcoin blockchain lacks certain features that Ethereum does not.
Since the Ethereum DeFi ecosystem is so lucrative, it should come as no surprise that investors are eager to get some of that profit.
WBTC is not the only BTC token on Ethereum. HBTC and RENBTC are some of the other examples. However, only WBTC has 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 the chart clearly shows, the competition for tokens remains largely unchanged and is significantly less in circulation, accounting for only 20% of the total BTC supply on Ethereum.
Related reading | Protecting privacy: the future of DeFi
BadgerDAO is a decentralized autonomous organization that aims to create the products and infrastructure necessary for Bitcoin to become pledge to other blockchains.
BadgerDAO has been instrumental in raising Wrapped Bitcoin over its competitors. The platform currently has $ 632 million worth of locked tokens.
There are a total of 13 chests (called “sets”) on the site where you can put your tokens. Many of these sets are pairs of WBTC liquidity and other tokens. Hence, the whole value is not locked under the wrapped token.
However, there is only a WBTC calculation that is supported by Yearn Finance. The vault is currently the largest on the platform, holding about 200 million tokens.
Badger offers quite low price-to-earning ratio | Source: BadgerDAO
The above chart is taken from the BadgerDAO report, which shows that they have one of the lowest price / earnings ratios compared to other DeFI companies.
Related reading | Top 10 DeFi Projects in Q2 2021
Over the past 30 days, the value of the cryptocurrency has dropped by 14%.
However, in the last week of June, the overall trend seems to have increased. Below is a graph showing the change in the value of the cryptocurrency:
BTC seems to be on a slight upward trend | Source: BTCUSD on TradingView
According to a Voyager Digital survey, 87% of respondents plan to buy more cryptocurrency in the coming months. 7 out of 10 respondents also believe that market sentiment will be optimistic in the next three months.
However, other investors like Rich Bernstein believe that we are looking at a bear market.