Saturday, September 19, 2020

Cantidad de bitcoins tokenizados en Ethereum supera los 100.000 BTC

Key facts:
In January 2020 the number of tokenized BTC was only 1,110 units.
DeFi and the integration of WBTC into MakerDAO have driven growth.

The amount of tokenized bitcoins on the Ethereum network reached a new high this week, after exceeding $ 1 billion in capitalization. There are currently more than 100,000 tokens anchored to bitcoin (BTC) in the smart contract network, based on BTC On Ethereum metrics.

In the last 30 days, growth has been meteoric. On August 19, the total number of tokens (ERC-20) anchored to BTC in Ethereum was 44,051 units, but the figure climbed this Friday, September 18 to 100,807, an unprecedented record that has surprised the market since that amount in January it was only 1,110 BTC.

The main asset among the tokens anchored to bitcoin in Ethereum remains Wrapped Bitcoin (WBTC) with more than 70,000 tokens and a capitalization that exceeds 780 million dollars, that is, 70% of the total of tokens of this type. It is followed by renBTC with 20,000 units (USD 220 million), HBTC with 4,800 tokens (USD 52 million) and sBTC with 3,300 units (USD 37 million). Other projects measured include imBTC and pBTC, which together account for some 1,600 bitcoins.

The metric of bitcoin-anchored tokens in Ethereum began to register in January of last year with the launch of WBTC. It is an initiative of the custodial startup BitGo and the decentralized exchanges Kyber Network and Republic Protocol, according to a report by CriptoNoticias. Since then the market has seen new projects emerge for BTC operators to "bridge" to Ethereum.


WBTC and bitcoin-anchored tokens on Ethereum

The vertiginous rise began in February 2020, when the number of tokens barely exceeded 2,000 units. Two elements have played a key role in this emergence: the interest or returns that are generated in the applications of decentralized finance (DeFi) and the "integration" of WBTC to MakerDAO as a reserve asset.

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At this point it should be mentioned that the addition of WBTC to MakerDAO would be aimed at establishing a marketing strategy in which it is offered to obtain bitcoin with the referred token.The truth is that "integration" is only useful as a reference for setting prices.

Quoted by digital media, Sam Bankman-Fried, CEO of the cryptocurrency derivatives exchange FTX, said that there is another aspect at stake that would be influencing a greater purchase of the tokens: “the great demand” for OTC (over the counter) purchases. ).

A report published last week by CriptoNoticias pointed out that the growth in amounts is also driven by whales (large holders or owners) and institutional investors. However, this approach also shows a dark point and that of the increases in the payment of commissions.

For researcher Lucas Outumuro, it is possible that hodlers, or "hard" bitcoin savers, prefer to maintain their positions with the first cryptocurrency before risking their funds in the search for the profits that the anchored tokens and DeFi promise.

It should be noted that the 2020 cryptocurrency market has been conditioned by several aspects: the coronavirus pandemic, the halving of Bitcoin, the increased use of DeFi and financial crises on a global scale due to economic stoppages.