That’s equivalent to the entire total amount secured, or TVL, in DeFi less than four months ago.
As stated by the DeFi Pulse, approximately 98,300 BTC (worth $1.05 billion) has been tokenized using protocols other than Blockstream’s Lightning Network — relating to more than 12% of the DeFi’s sector’s $8.57 billion mixed capitalizations.
The breakthrough describes the growing prominence of ETH-based protocols for producing passive incomes among Bitcoin holders, with the entire DeFi sector having been estimated at just $1.05 billion TVL as of the start of June — of which $47.5 million or 4.7% as Bitcoin, meaning that the share of DeFi’s capitalization described by BTC has increased by 150% over three and a half months.
By opposition, the Lightning Network has only brought 1,100 Bitcoin worth $11.5 million since March 2018
In June, the widespread majority of BTC in the DeFi sector took the form of Wrapped Bitcoin (WBTC). Nevertheless, the breakthrough of Ren’s more decentralized Virtual Machine and RenBTC, in addition to grassroots tokenization protocols such as PieDAO’s BTC++ in 2020, have developed Bitcoin’s development into DeFi.
Bitcoin tokenization protocols let owners secure their Bitcoin and mint an equivalent ERC-20 token, supporting the value denoted by a user’s BTC accommodating to cooperate with smart contracts Ethereum network.
While Wrapped is yet the highest-ranked tokenization protocol by cumulative
BTC bolted after withdrawing 56,800 Bitcoin value roughly $605.5 million since late November 2018, Ren’s Virtual Machine has tokenized 21,500 Bitcoin worth $230 million after originating in May of this year.
While both protocols have more than doubled in the number of locked Bitcoin over a month, WBTC proceeds to attract a more significant volume of BTC than Ren, growing from approximately 28,360 BTC to 56,850 BTC, while RenBTC increased from 10,000 BTC to 21,510 over 30 days.
Over the past three months, both projects have raised by more than 850%. On June 19, WBTC stewarded only 5,839 BTC, and Ren had tokenized just 155 BTC.