The number of users demanding WBTC continues to grow on Ethereum Decentralized Finance (DeFi) platforms. According to data provided by Etherscahn, 999.6 WBTC worth $9.28 million were issued some hours ago. This shows that DeFi solutions continue to expand and grow in the cryptocurrency market.
DeFi Solutions Expand
With the new minting of WBTC on the Ethereum (ETH) network, there are now 2,300 tokens. This is 2.5 more BTC locked in this platform than in the traditional and highly awaited Lightning Network (LN).
The Lightning Network is one of the most important scaling solutions for Bitcoin that aims at reducing congestion on the Bitcoin network. The LN would be able to process thousands of transactions per second for low fees and almost no transaction times.
DeFi Pulse, a recognized platform for decentralized finance information reports that there are in the market 2970 WBTC that can be used by users in a wide range of DeFi platforms. Moreover, the total value locked in USD in the network reached $21.43 million.
This token aims at providing BTC liquidity to the Ethereum network and help projects that need to use BTC solutions rather than other cryptocurrencies. At the moment, there are several exchanges that are offering the WBTC digital asset for users to buy and sell it. There are also some merchants that work as sources of token distribution, including Dharma, Kyber Network, AirSwap and more.
It is worth pointing out that Wrapped Bitcoin is an ERC-20 token and that is held by the custodian BitGo. Moreover, there are several decentralized applications and projects that are already working with it, including MakerDAO and Compound, among others.
The decision to use and create an ERC-20 currency based on BTC responds to the demand that has been growing in the last few years for these kinds of solutions. Indeed, even if users wanted to use BTC on the ETH network, they would not be able. This is why it the decision to create a Bitcoin-based ERC-20 token to run on top of the Ethereum network and offer solutions to users in the market.
The Decentralized Finance market continues to grow and it is attracting a large number of users that cannot or do not want to use traditional financial solutions provided by institutions and organizations.
Currently, Bitcoin is the largest cryptocurrency in the market with a valuation of $170 billion and a price per coin of $9.290.