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More than $6 billion of Bitcoin has now been tokenized as WBTC on Ethereum.
Currently, one percent of Bitcoin’s circulating supply is tokenized as Wrapped BTC (WBTC), corresponding to about $6.2 billion in BTC.
Kia Mosayeri, product manager at crypto custody startup BitGo, acknowledged the achievement on June 7 through Twitter. Wrapped Bitcoin protocol custodian BitGo introduced their Bitcoin-backed ERC-20 token WBTC on Ethereum in January 2019.
— WBTC (@WrappedBTC) June 7, 2021
According to Etherscan, there are presently 187,610 Bitcoins wrapped on the protocol, corresponding to a $6.18 billion fully diluted market capitalisation. According to CoinGecko, the current circulating supply of BTC is roughly 18.73 million, confirming the 1% milestone.
BTConEthereum estimates there are 240,620 Bitcoins that have been tokenized across various protocols for use on Ethereum, representing a combined capitalization of $7.91 billion. Wrapped Bitcoin exerts a clear dominance over the sector, representing 78% of all Bitcoin tokenized on Ethereum.
Other notable Bitcoin tokenization protocols include Huobi BTC, which ranks second with 37,906 BTC or 15.7 percent of the Bitcoin supply, and RenBTC, which is third with 10,226 tokenized BTC. Synthetic BTC also has 1,471 BTC, while imBTC has 1,169 Bitcoin and TBTC has 916 BTC.
The rapid expansion of yield farms and Ethereum-based DeFi protocols that allow tokenized BTC has been the key reason driving the sector’s growth.
BadgerDAO, an Ethereum-based BTC yield system, collaborated with RenVM in late April to establish a bridge between renBTC and its own yield farms. According to DeFi Llama, the BadgerDAO platform is home to assets valued more than $540 million.