It was a matter of time, but the total Wrapped Bitcoin market cap has officially surpassed $1 billion. This is partially thanks to the Bitcoin price rising, but also due to increasing WBTC demand. This tokenized version of BTC continues to make its mark on the industry.
Wrapped Bitcoin Continues to Rise
For some time now, there have been debates regarding the purpose of wrapped Bitcoin on the Ethereum blockchain. For some, it makes perfect sense. Everyone seems to think it is wasteful and leads to more centralization. Both opinions appear to be valid, yet no one can deny the demand for WBTC keeps increasing. After all, it has recently hit a $1 billion market cap.
At its core, WBTC provides access to everything the Ethereum ecosystem has to offer. Whether it is dApps, DEXes, DeFi, or any other feature, it requires some form of asset native to Ethereum. For Bitcoin holders, this often means they are left out, unless they opt for tokenizing their wealth on Ethereum’s ecosystem.
The market cap of Wrapped Bitcoin has hovered near the $1.04 billion mark for a while now. As of yesterday, it surpassed the $1 billion mark in a more definitive manner. While it is not the first time this threshold is reached, the previous time netted a near $20 million decline in total valuation hours later. It now seems that overall demand has been established in a more convincing manner.
One has to wonder why Wrapped Bitcoin has become so popular. The rise of DeFi is often pointed out, yet WBTC isn’t necessarily used for lending or borrowing. Even when locking up funds for a full year, users will earn 1.4% or less for doing so. It can be used as collateral on MakerDAO, as well as other platforms, for yield farming. That may be a driving factor of adoption.
Listing on More Exchanges Can help
The ongoing appeal of Wrapped Bitcoin has not gone by unnoticed. Exchanges are currently scrambling to launch WBTC trading markets. Uniswap remains the most popular platform, followed by Binance, Tokenize, Balancer, and OKEx. This token is primarily traded against either Bitcoin itself, or Ethereum. With $65 million in daily volume, things appear to be progressing nicely.
Thanks to the increase in demand for WBTC, Wrapped Bitcoin has steadily claimed the market cap rankings. It currently sits behind NEM, and ahead of Dai. It is intriguing to see this token surpass the “native stablecoin” of Ethereum, known as Dai. Success can come in many different ways, yet it remains to be seen what the future holds for WBTC and other tokenized versions of Bitcoin.