Wrapped Bitcoin (WBTC) currently has a price of $39.3K and is up 1.62% over the last 24 hours. The cryptocurrency is ranked 17 with a market cap of $6.3B. Over the last 24 hours, it saw $114.4M of trading volume. The token has a circulating supply of 160.3K tokens out of a total supply of 160.3K tokens.
Wrapped Bitcoin (WBTC) is a cryptocurrency that represents Bitcoin (BTC) on the Ethereum blockchain. It enables users to access the benefits of Bitcoin's liquidity and stability while enjoying the flexibility and functionality of the Ethereum ecosystem.
Wrapped Bitcoin is a tokenized version of Bitcoin on the Ethereum blockchain. WBTC brings the liquidity and stability of Bitcoin to Ethereum, allowing users to access dapps and DeFi protocols on the Ethereum network. WBTC is created by locking up Bitcoin and issuing an equivalent amount of WBTC tokens on Ethereum. This ensures that WBTC is always backed by Bitcoin, making it a secure representation of the cryptocurrency. WBTC allows users to leverage the benefits of both Bitcoin and Ethereum ecosystems. By tokenizing Bitcoin, users can move their holdings onto Ethereum and access a wide range of dapps, smart contracts, and DeFi protocols. WBTC enables Bitcoin holders to participate in decentralized exchanges and lending platforms on Ethereum, providing opportunities for earning interest and accessing financial services.
WBTC's interoperability plays a crucial role in unlocking the potential of both Bitcoin and Ethereum. By bridging the two ecosystems, WBTC enhances liquidity and facilitates seamless transactions between Bitcoin and Ethereum. This integration of two major cryptocurrencies fosters innovation and collaboration within the decentralized finance community. Wrapped Bitcoin brings Bitcoin's liquidity and functionality to the Ethereum blockchain through tokenization. Its interoperability allows for easy movement between Ethereum-based applications, expanding the use cases for both Bitcoin and Ethereum in decentralized finance. WBTC's interoperability plays a vital role in unlocking the potential of both cryptocurrencies, enhancing liquidity, and creating new opportunities for users in the decentralized finance space.
Wrapped Bitcoin addresses the challenge faced by Bitcoin holders in utilizing their Bitcoin within the Ethereum ecosystem. While Ethereum offers a wide range of decentralized applications and smart contracts, Bitcoin cannot be directly utilized in these environments. Consequently, Bitcoin holders are unable to participate in the growing DeFi ecosystem, which encompasses lending, borrowing, and trading of digital assets. To overcome this limitation, Wrapped Bitcoin tokenizes Bitcoin on the Ethereum blockchain. Each WBTC token is backed by an equivalent amount of Bitcoin, securely stored in a custodial wallet. The creation and redemption of WBTC tokens are facilitated by approved merchants known as "Minters" and "Burners." By converting Bitcoin into WBTC, Bitcoin holders gain access to the Ethereum-based DeFi ecosystem, enabling them to lend, earn interest, and utilize WBTC as collateral for borrowing other tokens. This enhanced liquidity opens up new possibilities for Bitcoin holders, allowing them to diversify their holdings and actively participate in decentralized finance.
WBTC prioritizes security by implementing a trustless model. Through Proof of Reserve, participants can independently verify the total supply and the one-to-one backing of WBTC with actual Bitcoin. This is made possible by a consortium of custodians who hold Bitcoin reserves, ensuring transparency and enabling anyone to audit the reserves. The transparency of WBTC extends to its on-chain operations. Every transaction involving WBTC can be easily tracked on the Ethereum blockchain, minimizing the risk of fraud or manipulation.
Wrapped Bitcoin (WBTC) was created by a collective effort between BitGo, Kyber Network, and Ren (formerly Republic Protocol) in January 2019. BitGo is a reputable cryptocurrency custodian and security company, while Kyber Network serves as a decentralized liquidity protocol facilitating seamless token swaps. Ren, on the other hand, focuses on blockchain interoperability and cross-chain liquidity. The community that runs Wrapped Bitcoin updated the list of custodians in November 2022, removing the now collapsed FTX and nine others.
Wrapped Bitcoin offers a unique advantage by allowing users to retain exposure to the value of Bitcoin while simultaneously accessing the benefits of Ethereum's ecosystem. This means that individuals can enjoy the value of Bitcoin, a well-established cryptocurrency, while also leveraging the flexibility and functionality offered by Ethereum. This combination of strengths from both worlds creates a highly valuable asset that caters to the diverse needs and preferences of cryptocurrency enthusiasts.
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