A report on Tuesday by Messari has confirmed the growing demand for Bitcoin in the decentralized finance (DeFi) space. About half a billion dollars has already been tokenized on Ethereum to be utilized in the now-booming industry. This somewhat indicates that Bitcoin will have a huge place in the industry as time proceeds.
0.3% of Bitcoin locked in DeFi
Messari, a cryptocurrency analytics company took to Twitter to announce that the amount of Bitcoin locked in DeFi has reached $500 million. This applies that 0.3 percent of the cryptocurrency market capitalization ($216 billion) has been diverted to Ethereum. In that course, a lot of Bitcoin can still be captured by DeFi protocols that tokenize Bitcoin to Ethereum.
“$500M worth of #Bitcoin has been ported over to Ethereum in 2020. With only 0.3% of all bitcoin on Ethereum and DeFi booming, the opportunity for decentralized bridges between the two chains is hard to ignore.”
As Bitcoin is being tokenized on Ethereum, one can predict that a lot of opportunities awaits the largest cryptocurrency amid the booming industry. Already, Bitcoin is being consumed more in its tokenized form than when its natural form. As of August 17, Cryptopolitan reported that more WBTC (i.e., Bitcoin wrapped in Ethereum) was issued on August 9 than the Bitcoins mined.
Will Bitcoin locked in DeFi skyrocket?
It is hoped that more Bitcoin will be locked in DeFi, amid the advent of tokenization protocols. Besides, the existing Bitcoin tokenization protocols are growing to be ranked among the 10 largest DeFi protocols. Precisely from DeFi Pulse, WBTC and RenVM are ranked number nine and ten, as they account for $453 million and $232.4 million Bitcoin locked in DeFi, respectively.
To put things in perspective, the demand for Bitcoin in DeFi is so strong that Ren recorded almost 470 percent in locked funds from the start of August, at $40.9 million. WBTC, on the other hand, posted a 157 percent increase in locked funds.