Data analysis shows that one percent of Bitcoin’s circulating supply is now tokenized as Wrapped BTC (WBTC). That amount equates to around $6.2 billion worth of BTC. This amount is tokenized on Ethereum as WBTC. The milestone was acknowledged by the product manager of the cryptocurrency custody company BitGo, Kia Mosayeri, who tweeted this news on June 7.
BitGo is the renowned custodian for the Wrapped Bitcoin protocol that launched its Bitcoin-backed ERC-20 token WBTC on ETH in January 2019.
— WBTC (@WrappedBTC) June 7, 2021
Based on Etherscan data, there are about 187,610 Bitcoins wrapped on the protocol. This amount equates to a fully diluted market cap of $6.18 billion.
The current circulating supply of bitcoin is about 18.73 million, based on CoinGecko data, confirming the 1% milestone. BTConEthereum estimates that there are about 240,620 Bitcoins that have been tokenized on different protocols for use on Ethereum. That represents a cumulative capitalization of $7.91 billion.
Wrapped Bitcoin is seen to exert an undisputed dominance over the industry, representing around 78% of all the bitcoins that are tokenized on Ethereum. The other leading Bitcoin tokenization protocols include the second-placed Huobi BTC with 37,906 BTC or 15.7% of the BTC supply. The third place is taken by RenBTC with 10,226 tokenized BTC.
Synthetic BTC has 1,471 BTC, while imBTC comes in with 1,169 Bitcoin, and TBTC has 916 BTC. The recent proliferation and growth of yield farms and interest-bearing Ethereum-based DeFi protocols that support tokenized bitcoin has been the main force driving the industry’s growth.
Sometime in late April, Ethereum-based BTC yield protocol BadgerDAO partnered with RenVM to unleash a bridger between its yield farms and renBTC. DeFi Llama analysis estimates that over $540 million worth of assets is locked on the BadgerDAO platform.