Bitcoin-pegged ERC-20 token Wrapped Bitcoin (wBTC) sees a significant increase in its demand on the Ethereum blockchain as the number of wBTC has reached the $150 million figure on the blockchain. This impressive surge in the demand of wBTC on DeFi protocols shows that Bitcoin (BTC) is blowing up on the Ethereum blockchain.
The increasing demand for Wrapped Bitcoin also indicates to the explosive growth of the decentralized finance (DeFi) market. DeFi market’s total locked value has surged high within the duration of the past two months. Recently, the DeFi sector achieved the $3 billion figure and now with an impressive surge in the number of wBTC tokens on the ETH blockchain, DeFi’s total locked value has reached $3.54 billion and is heading towards $4 billion.
wBTC set to become “tether of pegged bitcoin”
At the beginning of this year, there were less than 1000 wBTC on the Ethereum blockchain whereas now the number has increased to 1600. User activity seems to be surging high in the decentralized finance market after looking at the success of Wrapped Bitcoin on DeFi protocols.
A Messari’s researcher says that wBTC is set to become the “tether of pegged bitcoin”:
“BTC on Ethereum is blowing up. After starting the year with <1,000, there is now over 16,000 ($150 million) This is in large part due to wBTC which is on its way to become the ‘tether of pegged bitcoin.’”
Various companies and organizations in the DeFi sector use wBTC for financial services which means that the usage of this bitcoin-backed token is growing up out there in the market.
Cryptocurrency exchanges continue to list DeFi tokens
The rapid increase in the popularity of the decentralized space has urged cryptocurrency exchanges to direct their attention towards this sector. The industry’s top cryptocurrency exchanges such as Binance, OKEx, and FTX are continuously adding support for high-profile DeFi tokens.
The leading digital currency exchange Binance has almost listed all of the DeFi tokens except Balancer (BAL). The OKEx exchange recently added support for Balancer and Synthetix.