About 100k BTC are now tokenized on Ethereum, and over 50% of those were moved in the last thirty days.
That means the BTC was tokenized in order to gain entry to non-centralized financial protocols of the ETH network. That’s the same as the overall value locked, or TVL, in DeFi less than 4 months ago.
Around 98,3k Bitcoins with a worth of over one billion dollars were tokenized by utilizing ways that weren’t Blockstream’s Lightning Network – bringing the number to over 12 percent of the DeFi sector’s $8.57B combined capitalization.
This is telling of the growing popularity of Ethereum-founded protocols for making passive profits for BTC owners, with the whole DeFi industry being estimated at over one billion TVL in June. From that amount, almost 50 million dollars, or 4.7%, was BTC, showing that DeFi’s capitalization share shown by Bitcoin jumped by 150% in just 3.5 months.
By comparison, the Lightning Network gathered just 1,1k BTC worth 11.5M dollars since its inception in 2018.
In June, the bigger part of Bitcoins in the DeFi branch was represented by Wrapped Bitcoin. But, the inception of Ren’s even more non-centralized Virtual Machine and RenBTC adding to grassroots tokenization rules like the PieDAO’s BTC++ in 20202 led to BTC’s growth into DeFi.
BTC tokenization protocols allow users to lock up their BTC and mint an ERC-20 token, letting the amount shown by a user’s BTC holding commence interactions with crypto contracts on the ETH network.
Though WBTC continues to be the best-ranked Bitcoin tokenization protocol locked following the receiving of 56,8k BTC worth almost $605.5M since November 2018, Ren’s Virtual Machine has tokenized 21,5k BTC amounting to $230 million since its launch in spring 2020.
Although these protocols have more than doubled the amount of locked BTC over a month, WBTC carries on attracting more Bitcoins than Ren, rising from approximately 28,360 to 56,850 digital coins, and RenBTC has risen from 10k Bitcoin to 21,510 in a month.
For the last 90 days, both ventures expanded by over 850 percent. In June, WBTC was representing just 5,839 Bitcoins, and Ren tokenized only 155 Bitcoins.
Curve Finance is the best-ranked profit-making protocol by tokenized Bitcoin, with 27,k BTC worth 295M dollars. Aave is next in line with 17,8 Bitcoins with a value of 190.5M dollars, and Balancer is next in line with 9,5 Bitcoins with a value of 101.6M dollars. Together, these 3 gathered over 50% of the tokenized BTC.
Yet, with just 0.47 percent of BTC’s supply tokenized, there’s a lot of worth that’s gonna probably move from BTC to DeFi in the following times.