The breakthrough comes four weeks following the TVL of all Bitcoin tokenized on Ethereum (ETH) exceeded $1 billion for the first time. The prevailing TVL of tokenized Bitcoin is approximately $1.5 billion, of which WBTC currently embodies one-third.
Wrapped Bitcoin is presently the fifth-largest DeFi protocol in terms of TVL, expressing almost 10% of the entire sector’s locked funds. WBTC’s TVL launched above $100 million for the opening time around July 8.
Wrapped Bitcoin lets users lock up BTC in exchange for WBTC — an ERC-20 token tightened to Bitcoin — which provides BTC holders to access the various Ethereum-powered decentralized finance (DeFi) ecosystem using it as insurance.
In the first half of 2020, WBTC’s TVL increased from $4 million to $36 million. Thus, showing the extreme rush in demand for DeFi through the third quarter.
The DeFi balloon has also profited other Bitcoin tokenization protocols, with Ren’s (REN) VM securing up more than $300 million worth of BTC since originating at the end of May.
REN’s price has grown by harshly 180% over the equivalent period. With the token jumping 14% over the last 24 hours after posting on Coinbase
Not all tokenization protocols have experienced sustained progress. PieDAO’s TVL lately returned to May’s sub-$1 million levels after casually spiking in July.
The A16z-backed Keep Network has also dropped out on the spoils of the recent DeFi excitement, with the embattled the BTC protocol coming under attack recently for liquidating Ether belonging to all holders in an association who see a single signer go offline.