Bitcoin in WBTC Protocol Reaches 1% of Total BTC Supply

One percent of the entire Bitcoin supply is currently locked on the Wrapped BTC (WBTC) protocol. The estimate of the tokenized digital asset is over $6.2 billion. The locked Bitcoins are hosted on the Ethereum Network as Wrapped Bitcoins. 

Kia Mosayeri, the product manager of crypto custody service BitGo, acknowledged the milestone in a tweet. The tweet made on June 7 said: “I’m very proud to report that we have officially wrapped and brought 1% of all of Bitcoin’s circulating supply to  #Ethereum via @WrappedBTC.” 

WBTC was launched in 2019 as a Bitcoin-pegged ERC-20 token. BitGo oversees the Wrapped BTC protocol and has it in its custody. Etherscan indicates over 187,609 Bitcoins wrapped and constituting over $6.2 million in liquidity. The present circulating supply of BTC is 18.73 million which signifies an accurate one percent locked up. 

Bitcoins that have been tokenized on several other protocols are estimated to be over 240,620 coins. Wrapped BTC is the clear topper of tokenized Bitcoins with a 78 percent dominance. The primary reason for this growth is the proliferation of yield farms and ETH  DeFi protocols that support tokenized BTC.

Other Protocols That Hold WBTCs

Huobi BTC leads as custodian of wrapped bitcoins. The protocol holds about 37,906 BTC or 15.7% of Bitcoin’s supply. RenBTC follows with 10,226 Bitcoins tokenized in its custody, others includes Synthetic – 1,471 BTC, imBTC – 1,169 Bitcoin, and TBTC – 916 BTC.

These wrapped Bitcoins are soon after unwrapped or burned by the largest DeFi sectors. During the peak of a bullish Bitcoin market in 2020, some BitGo clients choose to exchange their wrapped BTC for the real thing. However, depending on the client-based order of priority, BTC or DeFi programs are decided upon as the best options. 

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