Earlier DeFi bullish cycle has further pushed the entire value locked [TVL] of renowned Bitcoin [BTC] tokenization protocol Wrapped BTC [WBTC] up by 900% to surpass $1 Bln.
This milestone comes 4-weeks after the TVL of all Bitcoin tokenized on the Ethereum [ETH] surpassed $1 Bln for the primary time. The present TVL of tokenized Bitcoin is almost $1.5 Bln, of which WBTC presently represents one-third.
Wrapped Bitcoin is now the 5th-largest DeFi protocol in terms of TVL, representing nearly 10% of the entire sector’s locked capital. WBTC’s TVL pushed over $100 Mln for the primary time around 8th July.
Wrapped Bitcoin lets users lock up BTC in exchange for WBTC – an ERC-20 token pegged to Bitcoin – that permits BTC holders to access the various Ethereum-powered decentralized finance [DeFi] ecosystem employing it as collateral.
Within the primary of this year, WBTC’s TVL grew from $4 Mln to $36 Mln, demonstrating the acute surge in demand for DeFi within the 3rd quarter.
The DeFi bubble has also benefited other Bitcoin tokenization protocols, with Ren’s [REN] VM locking up over $300 Mln worth of BTC since launching at the end of May.
The price of REN has increased by roughly 180% over the same period of time, with the token bouncing 14% over the past 24 hours after its listing on the Coinbase exchange.
Not all tokenization protocols have enjoyed sustained success, with PieDAO’s TVL earlier retracing to May’s sub-$1 Mln levels after briefly spiking earlier in the month of July.
The A16z-backed Keep Network has also omitted on the spoils of the recent DeFi frenzy, with the embattled tBTC protocol coming under attack recently for liquidating Ethereum belonging to all individuals within a group who see a single signer go offline.