Renowned cryptocurrency analytics firm Messari estimates that around $500 Mln worth of Bitcoin [BTC] has been tokenized on the Ethereum network to be used in DeFi protocols.
The firm’s latest report points out however that this figure represents just 0.3% of Bitcoin’s $216 Bln market capitalization, meaning there’s ample opportunity for projects that facilitate the migration of Bitcoin [BTC] onto Ethereum [ETH], to capture significant value.
In line with DeFi Pulse, popular Bitcoin tokenization protocols WrappedBTC [WBTC] & RenVM are the 9th and 10th largest DeFi projects by locked funds, with $453 Mln & $232.4 Mln respectively.
Ren has seen an explosion in use over the past month, with the worth of funds locked within the protocol gaining nearly 470%, from $40.9 Mln at the beginning of August.
WBTC also absorbed $274 Mln in the capital last month, increasing the worth of its locked funds by 157%. Just within August, the number of Bitcoins being tokenized via WBTC briefly exceeded the speed at which new BTC are mined, signposting booming demand for Bitcoin within the DeFi ecosystem.
Messari tweeted the report’s findings & tagged Keep Network [tBTC] alongside Ren [renBTC] as leading projects bringing BTC to ETH.
ReleaseKeep’s inclusion was revealed as unexpected within the post’s replies, as a code vulnerability in Keep’s trustless Bitcoin tokenization protocol tBTC was noted earlier in the month of May, leading to the project going offline just 2 days after its launching. However, tBTC plans to release a second version of tBTC after a further round of security audits and testing and has been distributing its work token KEEP via a stake drop since June.
Several smaller projects have also entered the Bitcoin tokenization ecosystem over recent months, with PieDAO’s BTC++ pool attracting 58 Bitcoin since launching since April.