The latest reports show that Bitcoins get tokenized faster than they are minted as the DeFi hype continues as we are reading more in the upcoming Bitcoin news today.
Since Sunday, 1043 more bitcoins get tokenized through wrapped BTC than they were created by the miners as the Ethereum-based decentralized finance space is booming and there are no signs of stopping. More than 900 bitcoins are mined per day with the current issuance rate of 6.25 bitcoins per block and the 10 minute block time. As per the most recent data, more than 31,000 bitcoins were tokenized on Ethereum according to Dune Analytics while 75% of which were minted by Wrapped bTC.
Ethereum’s supply of tokenized bitcoins was hovering around 3000 until mid-May once the rate of the new tokens shot up. The rate of tokenizing bitcoin shows that there’s surging demand to use bitcoin in the burgeoning network of the ETH-based DeFi applications. WBTC still exhibits strong growth as the demand for BTC in DeFi exploded according to Kyle Davies, the founder of Three Arrows Capital and he also expects this trend to continue.
Back in July, Three Arrows Capital minted the tokenized bitcoins through BitGo which is a company that helps spread the Wrapped BTC back in 2019. In one year, WBTC became the “first-class asset” in the decentralized finance space and it will only get bigger according to co-founder Su Zhu, as USDC and USDT are now.
As per the recent news, the on-chain WBTC was growing steadily on Ethereum and the positive development allows for more cross-chain communications which are a very important step towards integrating the smart contract of Ethereum especially with Bitcoin’s secure blockchain database. According to the Crypto Lark, the amount of wrapped BTC locked on the smart contracts of Ethereum now totaled $7.8 million which surpasses the lighting bitcoin network which has about $7.8 million in BTC on its own network despite being in development since 2015.
Wrapped BTC was launched in 2019 and it operates similarly to a stabelcoin pegged one-to-one to Bitcoin and it was started by BitGo in collaboration with Kyber Network and Republic Protocol as it was initially reported when it was announced. WBTC is now a part of a much bigger movement on Ethereum towards what it is called decentralized finance (DeFi) and it has dominated the fast-growing sector with more than $1 billion locked in DeFi related contracts on the network.
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