After doubling during the month of August, the supply of WBTC has just passed a major milestone, exceeding 93,000 units.
This colossal number of WBTCs allows the BTC to surpass the $1 billion mark for its Total Locked-in Value (TVL) in DeFi.
As a reminder, the WBTC, for Wrapped Bitcoin Loophole, is a tokenized version of the BTC’s ERC-20 standard, making it compatible with Ethereum. Always following the course of Bitcoin, the forging of a WBTC requires the warranty of a BTC.
Thus, the WBTC indirectly allows the BTC to make a step into DeFi, and is notably used on decentralized exchanges and protocols, such as Compound.
To put this into perspective, this still represents 0.50% of the 18.5 million BTCs currently in circulation.
The progress of the WBTC is dazzling and proves how important the inclusion of Bitcoin in decentralized finance is :
Change in WBTC LST since November 2018 (in dollars) – Source: DeFi Pulse
What future for the WBTC?
If the forging of WBTC continues at this pace, the share of BTC locked in DeFi is not likely to decrease anytime soon. As a true bridge between Ethereum and Bitcoin, the WBTC has a very special interest, which cannot dry up in the course of time.
In constant increase since its creation, the total value locked in the WBTC could reach new heights in the near future.
Currently in the top 5 of DeFi’s products in terms of TVL, the WBTC has everything to stand up to the undeniable top trio: Uniswap, Maker and Aave.
After passing the symbolic $1 billion milestone of TVL, could the WBTC be the second DeFi product to reach $2 billion?
TVL DeFi ranking
The WBTC is gradually making its way into the DeFi, and was even incorporated last June into the forging process of Maker’s stablecoin, the DAI.
Without a doubt, the WBTC is now an integral part of the DeFi landscape and its function as an intermediary between Bitcoin and Ethereum ensures that it will remain there for a long time to come.