What’s behind the increase of the token tied to bitcoin in the network Ethereum?


Contents

Key facts:

Versions tokenizadas of bitcoin as WBTC are on the rise in the age of the DeFi.

The metrics point to more active addresses, higher volumes, and investors.

The era of finance, decentralized (DeFi) is setting up a scenario that involves each time more to bitcoin and their versions tokenizadas in Ethereum. Three metrics disseminated by The Defiant analyze the case of the token Wrapped bitcoin (WBTC) and his meteoric evolution in the network of contracts intelligent.

The report points out that additional incentives are pushing the “presence” of bitcoin in Ethereum and it mentions the decision of MakerDAO set the token as a collateral to get DAI. Another item that would be playing in favour of WBTC is the new trend of Yield Farming, or the “agricultural performance”.

The operators of WBTC would be to multiply by the generation of new addresses and more active addresses. According to the report, in the first week of June the active addresses were 200 or less. However, after the Yield Farming the peak exceeded the 800 + active addresses, then falling to around 400.

The active addresses of WBTC grew rapidly following the release of Yield Farming. Source: The Defiant.

“The active addresses daily increased 5 times in the 5 days following the launch of the association of agricultural performance between Ren, Curve and Synthetix (…) through the integrations with other protocols DeFi, WBTC has been able to triple its average active addresses daily to 169 so far this year”, highlighted in the analysis.

The second metric considered was the volume of large transactions which, according to The Defiant, was fired after the activation of the Yield Farming. On this point it is reported that the transactions for more than $ 100,000 with WBTC were almost non-existent for the 2019 and the first quarter of 2020.

The “agricultural performance” is increasing the volume of transactions with the token attached to bitcoin in Ethereum. Source: The Defiant.

The picture changed at the beginning of may with the integration of WBTC and MakerDAO, which led to operations in the amount of $ 28 million. However, the biggest push came with the Yield Farming which led the operations with WBTC to a peak of more than $ 300 million.

As a third aspect to highlight is mentioned the arrival of institutional investors that would be “pumping the large volume of transactions of WBTC to the $ 300 million”. This point will be exposed by the average balance that they maintain the operators of WBTC.

“The average balance of a holder of WBTC has increased as a result of the potential to obtain benefits from the integrations of the DeFi. Starting the year at USD 2.350, the average balance of an address WBTC has been on an upward trend exceeding USD 10,000 at the end of may,” says the study.

The figure rose further following the release of Yield Farming. The amount climbed up to the 30.800 dollars to the 27 of June, then falling to $ 22,000.

Tokens in the figures

Breaking News reported this week that 11.146 tokens (ERC-20) anchored to bitcoin in the network of Ethereum. Of that amount 8.165 units are of WBTC, which was at that time 73% of the total of the tokens. In the recent report of The Defiant, the figure was updated to 78%.

After WBTC is in the second place renBTC with 1.094 tokens are generated and in the third place is located HBTC with 710 units. Other projects of tokens anchored to bitcoin in Ethereum are: pBTC, tBTC and imBTC.

The total number of tokens of bitcoin in Ethereum currently represents 0.05% of the total supply in circulation than BTC, but it is estimated that the figure may increase. The advance would be subject to that are not presented vulnerabilities in the underlying protocols and what operators can motivate with incentives to multiply your income.

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