More than $1B in Bitcoin has been tokenized for DeFi

CRYPTONAIRE WEEKLY

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More than $1B in Bitcoin has been tokenized for DeFi

Almost 100,000 Bitcoin are now tokenized on Ethereum, more than half of which migrated over the past 30 days

More than $1 billion worth of Bitcoin (BTC) has now been tokenized to access decentralized finance (DeFi) protocols on the Ethereum (ETH) network. That’s equivalent to the entire total value locked (TVL) in DeFi less than four months ago.

According to DeFi Pulse, roughly 98,300 BTC, worth $1.05 billion, has been tokenized using protocols other than Blockstream’s Lightning Network — equating to more than 12% of the DeFi’s sector’s $8.57 billion combined capitalization.

The milestone illustrates the increasing popularity of ETH-based protocols for generating passive returns among Bitcoin hodlers, with the entire DeFi sector having been valued at just $1.05 billion TVL as of the start of June — of which $47.5 million or 4.7% was Bitcoin, indicating that the share of DeFi’s capitalization represented by BTC has increased by 150% over three and a half months.

By contrast, the Lightning Network has only attracted 1,100 Bitcoin worth $11.5 million since launching during March 2018.

In June, the vast majority of BTC in the DeFi sector took the form of Wrapped Bitcoin (WBTC), However, the launch of Ren’s more decentralized Virtual Machine (VM) and RenBTC in addition to grassroots tokenization protocols like PieDAO’s BTC++ this year have boosted Bitcoin’s expansion into DeFi. Read more...