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Wrapped Bitcoin Gains $1B TVL, Mints $616M in September

Wrapped Bitcoin Gains $1B TVL, Mints $616M in September

Wrapped Bitcoin (WBTC) has reached $1 billion in total value locked (TVL) amid creating $616 million worth of the said tokens in September, which is a 160% boost from August’s $232 million.

WBTC was close to this number by the end of September, even though it took a couple more days before it finally hit the $1 billion mark on October 6. This suggests that more users are using their bitcoins to join in the DeFi hype.

WBTC reaches $1 billion TVL (Source: DeFiPulse)
WBTC reaches $1 billion TVL (Source: DeFiPulse)

Topping the list of WBTC merchants is Alameda Research, which is led by crypto exchange FTX CEO Sam Bankman-Fried. According to data metrics site Messari, most of the WBTC are poured into various DeFi protocols for purposes such as yield farming, loan interest, and trading fees.

The article said that WBTC has “solidified its dominance” among all centrally-issued tokenized BTCs, even though more trustless options such as renBTC and tBTC pose a threat by eliminating the single point of failure.

Messari added,

Whether or not these alternatives will threaten WBTC’s dominance will depend on users desiring the emergent properties of decentralization and are willing to sacrifice capital efficiency in order to see this vision through.

Wrapped Bitcoin is an ERC20 token that is pegged to the price of Bitcoin. Simply put, it was created to represent Bitcoin, just in an Ethereum-based setup. Bitcoin holders lend their assets in the form of WBTC to earn interest through various DeFi practices. This way, Bitcoin will have more liquidity while helping DeFi users and platforms obtain more funds.

Jesus is the Senior Editor of CoinQuora. He's been following the crypto space since 2016, and may possibly do so indefinitely. He covers various blockchain-based developments and crypto market trends.