Ethereum’s blockchain is now home to more than $ 700 million in synthetic bitcoin tokens, with Wrapped Bitcoin (WBTC) holding most of
Onchain data shows that there are about 69,836 synthetic bitcoin tokens, which are worth more than $ 700 million circulating on the Ethereum network. The synthetic bitcoin (BTC) sector has grown enormously in recent weeks, from 38,021 BTC to the current 70,000 BTC during that period. Among the six synthetic bitcoin token projects, Wrapped Bitcoin (WBTC) takes the lead, as it currently represents more than 63% of the market with 44,622 WBTC.
The increase in the number of synthetic bitcoins represents an increase of 83% in a few weeks. According to Dune Analytics, there are seven synthetic BTC projects currently operational. However, TBTC (tBTC) does not currently have minted coins. Meanwhile, the other six synthetic bitcoin projects have between 45 BTC and over 40,000 BTC on the Ethereum blockchain.
WBTC leads the way
The Wrapped Bitcoin (WBTC) protocol is the main synthetic bitcoin coinage project at the moment, commanding about 44,622 BTC or 63% of the total market. It is followed by the RenBTC of the Ren Protocol, which controls 23% of the market, with 16,268 renBTC currently in circulation. The other four projects are: hBTC with 4,180, sBTC with 2,918, imBTC with 1,173 and pBTC with only 45 at the time of publication.
The industry leader WBTC has gained a lot of momentum in recent weeks, with reports on Friday revealing that Alameda Research acquired 70% of the total WBTC minted last month.
Most of the synthetic bitcoin is spread among holders, while the rest is used on cryptocurrency platforms like Uniswap, Balancer, Aave and Compound. Some centralized exchanges like FTX are supporting synthetic bitcoin trading on their platforms, with Binance revealing at the end of last month that it is listing the WBTC on its platform. However, most trading volumes of synthetic bitcoins are found on decentralized exchanges (dex). Uniswap, Balance, Curve, Synthetix, Bancor and 0x are the decentralized exchanges with the highest trading volume of synthetic bitcoins.
The synthetic bitcoin industry is growing in volume and popularity. However, it did not win over some of the leading figures in the cryptocurrency industry. Ethereum co-founder, Vitalik Buterin, wrote on August 16 who is concerned with the synthetic bitcoin space. “I am still concerned that these BTC Wrapped bridges are reliable. I hope they can all * at least * switch to a decent sized multi-sig”Added the Ethereum developer.
Buterin’s tweet sparked a debate in the cryptocurrency community, with members discussing a research article published by the Wanchain project. The newspaper claims that the Ren Protocol stores all of its collateralized bitcoins in a single address. Despite the apparent confidence problems, the Ethereum network continues to stand out as Bitcoin’s most dominant off-chain solution.