Quick take:
- The popularity of DeFi has led to Wrapped Bitcoin’s supply more than doubling in the month of August
- WBTC is an ERC20 token pegged to the price of Bitcoin
- It gives Bitcoin the flexibility needed for smart contracts and uses in DApps
- WBTC’s popularity has led to Binance listing the token
The DeFi boom of the last three months has led to the popularity of Wrapped Bitcoin (WBTC). According to the team at Unfolded, the supply of WBTC has increased rapidly. In August alone, its supply has more than doubled thanks to demand in the DeFi ecosystem. The team at Unfolded shared this observation via the following tweet.
As the DeFi ecosystem continues to grow, the supply of $WBTC is increasing rapidly. In August alone, its supply has more than doubled.
data @glassnode pic.twitter.com/DYOxGotbTn
— unfolded. (@cryptounfolded) September 1, 2020
WBTC Supply Increases by 2,503% from June
Further dissecting the chart provided by the team at Unfolded, it can be determined that the circulating supply of Wrapped Bitcoin in late June stood at 1,297 WBTC. That number now stands at 33,762 WBTC indicating an amazing growth in the supply of 2,503% in less than three months.
Binance Lists Wrapped Bitcoin (WBTC)
The demand for Wrapped Bitcoin (WBTC) due to DeFi has not gone unnoticed by the popular exchange of Binance. On Monday August 31st, Binance announced that it was listing Wrapped Bitcoin (WBTC). Trading pairs on Binance include WBTC/BTC and WBTC/ETH.
What Exactly is Wrapped Bitcoin (BTC)?
Wrapped Bitcoin (WBTC) is an ERC20 token that is pegged to the real-time value of Bitcoin. Each WBTC is backed by actual Bitcoin. Due to its issuance on the Ethereum network, WBTC is ideal for traders and investors who would like the power of Bitcoin as well as the flexibility of an ERC20 token.
Launched in January 2019, Wrapped Bitcoin (WBTC) was a joint initiative between BitGo, Kyber Network, Ren and other community players. WBTC is ideal for Ethereum Dapps that would like to access Bitcoin’s value as explained below by the team at Wrapped Bitcoin.
WBTC will allow the Ethereum network to be leveraged to enable new applications and use cases for Bitcoin… so DApps such as Compound, Dharma, dYdX, bZx, Gnosis, Maker, Set protocol and more can leverage Bitcoin for decentralized lending, margin trading and derivative markets. Further compelling new applications and use cases will be identified, explored and implemented as the ecosystem continues to grow and actively innovate.
…WBTC also makes it possible for traders to use Bitcoin value for token trades on decentralized exchanges (DEXs) such as AirSwap, DDEX, ETHfinex, IDEX, KyberSwap, Loopring, Radar Relay, RenEx, Switcheo Network, TheOcean and Dolomite. Wallet providers such as imToken and exchanges will now be able to reduce overheads with the ability to support multiple currencies while maintaining only the one Ethereum node.