Wrapped BTC and What Lightning Thinks about It

Colin Baseman

This week we have witnessed that one single operation may sometimes be more than enough to create more WBTC on the network belonging to ETH than the overall sum of Bitcoin that Lightning Network had locked.

It has become possible today to mint one thousand wrapped BTC on the above-mentioned network. It appears that it was a single operation. Moreover, it reflected the value of more United States native currency that exceeds that of the whole network owned by Lightning.

The operation was able to bring the entire amount of the cryptocurrency currently locked in wrapped BTC tokens to two thousand three hundred. At the same time, what the network has locked equals to nine hundred and twenty-seven BTC, which makes a huge difference and dwarfs Lightning.

Specialists are now making comparisons, doing research, and analyzing the data. According to DeFi Pulse, focusing on the most important aspects of the market, the aggregator is ready to show that the United States dollar value of wrapped BTC is twenty point seven million USD. This all turns it into the 8th most impressive DeFi project and protocol.

WBTC Keeps up with DeFi

Wrapped BTC is a token, as we all know, that permits customers to gain access to well-known Ethereum-based protocols while applying the value offered by their BTC holdings.

Custodian BitGo holds customers’ BTC. In contrast, there’re eight so-called initial traders or merchants whose main mission is to serve as mediators between the two parties. This is necessary to assist custodians and help users. This approach covers Prycro, Set Protocol, and several other not less prominent names like Kyber or Dharma among others.

The WBTC protocol operates through an organization that is autonomous and fully decentralized. The body comprises sixteen projects. The list includes the initial merchants along with MakerDAO. Also, the project has Compound.

DeFi Projects Have Increased and Keep Growing

Let us admit that DeFi has been steadily gaining popularity in the crypto market. Recently, it has significantly grown and developed. Now its expansion is even greater than before. Nowadays the number of DeFi projects that are willing to offer BTC tokenization is high. And, thanks to the ETH network, users can try out new opportunities that the community has obtained.

Last month, during the first week, PieDAO announced that they had launched their first fund known as BTC++ and declared that the fund can provide additional exposure to a basket of wider diversification. The team took into consideration the synthetic Bitcoin protocols and permitted customers to gain access to DeFi through its special token.

At the same time, it would hedge and protect all from potential failure. The company couldn’t ignore the importance of the latest events and their consequences and impact on the modern crypto industry. The brand’s token is said to have comprised twenty-five percent wrapped Bitcoin. Another twenty-five present belongs to imBTC. Next, Provable Bitcoin makes up another one-quarter of the total. Finally, the rest twenty-five present belongs to Synthetix Bitcoin.

Information that users receive in due time may help them stay tuned – this is how they can find out about the latest crypto market news as well as do all possible to protect themselves from possible danger. Half a year ago, at the end of 2019, Tokenlon, the famous decentralized exchange, decided to launch the synthetic Bitcoin protocol known as imBTC. Nevertheless, the mentioned token has lately provoked some sort of controversy. The conflict arose when it became obvious that criminals used them as an instrument to attack DForce and Uniswap a month ago.