Messari – Despite the DeFi Frenzy, Only 0.3% of BTC has Been Tokenized
Messari, a cryptocurrency analytics firm, has estimated that $500 million worth Bitcoin (BTC) has undergone tokenization on the Ethereum network for utilization on decentralized finance (DeFi) covenants.
The document published by the firm underlines that the aforesaid figure is merely 0.3% of $216 billion market capitalization commanded by Bitcoin. This implies there is a huge chance for ventures that pave way for movement of Bitcoin to Ethereum network and gain considerable value.
As per DeFi Pulse, well-known Bitcoin tokenization covenants WrappedBTC (WBTC) and RenVM hold ninth and tenth position in the top ten list of DeFi ventures, in terms of locked funds. Specifically, total value locked in WBTC and RenVM ventures is $453 million and $232.4 million, respectively.
In the last month, Ren has recorded exponential growth, with the total value of funds locked in the covenant skyrocketing by 470%, from $40.9 million in the beginning of August.
In August, WBTC also attracted $274 million in capital, reflecting 157% increase in total value of funds locked on m-o-m basis. Furthermore, during the same period, the number of Bitcoins mined was overshadowed by the number of Bitcoins tokenized through WBTC, underlining growing demand for Bitcoin in the Defi domain.
$500M worth of #Bitcoin has been ported over to Ethereum in 2020
— Messari (@MessariCrypto) September 1, 2020
While tweeting details of the study, Messari tagged both Keep Network (tBTC) and Ren (renBTC). He had mentioned that these two projects lure a major portion of Bitcoin to Ethereum. Many crypto enthusiasts were surprised to see mentioning of Keep as a bug in the network’s trustless Bitcoin covenant tBTC was found in May, forcing the venture to go offline within two days of roll out.
Nevertheless, tBTC intends to roll out another variant of tBTC after a supplement round of safety audits and trial, and has been disbursing its work token KEEP through a stakedrop from the month of June.
Numerous small ventures have joined the Bitcoin tokenization domain in the past few months, with PieDAO’s BTC++ pool luring 58 Bitcoin since rolling out in April.