With encapsulated Bitcoin approaching 189,000 BTC, the leading form of BTC on Ethereum now makes up nearly 1% of the total cryptocurrency supply.
The total supply of WBTC was only about 4,000 coins last June, and today it is 47 times that. The explosive growth has made the token the most popular form of Bitcoin on the Ethereum blockchain.
WBTC touches the 1% mark | Source: Arcane Research
In all, about 240,000 BTC has been encoded in the Ethereum protocols, of which 80% of the supply is made up of WBTC.
Why the need for WBTC?
Tokenized BTC is getting more and more popular because the Bitcoin blockchain lacks some functionality Ethereum No.
With the Ethereum DeFi ecosystem so profitable, it’s no surprise that investors are looking to grab some of this returns.
WBTC is not the only BTC token on Ethereum. HBTC and RENBTC are some other examples. However, only the World Trade Center notes such a huge growth.
Below is a chart showing the difference between WBTC and other tokens:
WBTC runs away from the rest | Source: Dune Analytics
As can be seen from the graph, the competition for the token is largely stagnant, and significantly less in circulation, making up only 20% of the total Bitcoin supply on Ethereum.
Related reading | Privacy Protection: The future of DeFi
BadgerDAO is an independent, decentralized organization that aims to build the products and infrastructure needed to bring Bitcoin to the world side to other block chains.
BadgerDAO has played a significant role in Bitcoin’s rise above its competitors. The platform currently holds $632 million of tokens held.
There are 13 lockers (called “settings”) in total on the website where you can deposit your tokens. A lot of these controls are liquidity pairs from WBTC and some other coins. As a corollary, not all value is locked under the encapsulated token.
However, there is a WBTC-only setting that is powered by yirn financial. Vault is now the largest on the platform with around $200 million in tokens deposited.
Badger offers quite low price-to-earning ratio | Source: BadgerDAO
The chart above is from the BadgerDAO report which shows that they have one of the lowest P/E ratios when compared to other DeFI businesses.
Related reading | Top 10 DeFi Projects in Q2 2021
In the past 30 days, the value of the cryptocurrency has fallen by 14%.
However, the general trend appears to have changed to the upside in the last week of June so far. 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 Voyager digital scan, 87% of respondents plan to buy more cryptocurrencies in the coming months. 7 out of 10 respondents also believe that market sentiment is optimistic in the next three months.
However, other investors like Rich Bernstein Feel that we are looking at a bear market.