1% OF BITCOINS SUPPLY HAS BEEN LOCKED IN THE WBTC PROTOCOL

Imagine a bridge connecting two worlds. 6月7日，加密货币托管公司BitGo的产品经理Kia Mosayeri在推特上承认了这一里程碑事件。BitGo是Wrapped Bitcoin协议的托管人，该协议于2025年1月在以太坊上推出了比特币支持的ERC-20代币WBTC。 比特币总流通供应量的1%已经被代币化为WBTC！ WBTC (@WrappedBTC) 2025年6月7日In the crypto sphere, that bridge is increasingly being built with Wrapped Bitcoin (WBTC). More than $6 billion worth of Bitcoin is now tokenized on Ethereum as WBTC. Continue reading One percent of Bitcoin s supply has been locked in the WBTC protocol The post One percent of BitcoinThe digital asset world buzzed recently when it was announced that a significant milestone had been reached: 1% of Bitcoin's total circulating supply is now locked within the WBTC protocol.This isn't just a symbolic achievement; it translates to roughly $6.2 billion worth of Bitcoin finding a new home on the Ethereum blockchain. Зараз біткойни на суму понад 6 мільярдів доларів символізуються на Ethereum як WBTC.Kia Mosayeri, Product Manager at BitGo, the custodian behind WBTC, confirmed this pivotal moment, signaling a deepening integration between the two largest cryptocurrencies.But why is this happening, and what are the implications for Bitcoin, Ethereum, and the broader decentralized finance (DeFi) ecosystem?This article will delve into the details of WBTC, explore its benefits, examine its risks, and analyze its impact on the future of cryptocurrency.

Understanding Wrapped Bitcoin (WBTC)

So, what exactly is Wrapped Bitcoin? More than $6 billion worth of Bitcoin is now tokenized on Ethereum as WBTC. One percent of Bitcoin s circulating supply is currently tokenized as Wrapped BTC (WBTC), equating to nearly $6.2 billion worth of BTC. The milestone was acknowledged by the product manager of crypto custody firm BitGo, Kia Mosayeri, who tweeted the news on June MoreAt its core, WBTC is an ERC-20 token on the Ethereum blockchain that represents Bitcoin.Think of it as a digital IOU for Bitcoin. 1% of Bitcoin's total supply, worth approximately $6.2 billion, has been successfully tokenized on the Wrapped Bitcoin (WBTC) protocol. The news comes from Kia Mosayeri, who is the product managerEach WBTC token is designed to be backed 1:1 by a Bitcoin held in custody, ensuring its value mirrors that of the original cryptocurrency.

How Does WBTC Work?

The process of ""wrapping"" Bitcoin involves a few key players:

• Custodians: Regulated entities like BitGo hold the actual Bitcoin.They are responsible for minting (creating) and burning (destroying) WBTC tokens.
• Merchants: These entities facilitate the conversion of Bitcoin to WBTC and vice versa.They work with custodians to ensure the correct amount of WBTC is minted or burned.
• Users: Anyone holding Bitcoin can convert it to WBTC through a merchant.Similarly, they can redeem WBTC for Bitcoin.

When a user wants to wrap their Bitcoin, they send it to a merchant, who then instructs the custodian (BitGo) to mint an equivalent amount of WBTC on the Ethereum blockchain. See full list on phemex.comThe Bitcoin is held in custody to back the newly created WBTC. L 1% dell offerta in circolazione di Bitcoin attualmente tokenizzato come Wrapped BTC (WBTC): un market cap complessivo di 5,8 miliardi di dollari. Il traguardo stato stato segnalato dal product manager della societ di custodia crypto BitGo, Kia Mosayeri, che il 7 giugno ha twittato a proposito della notizia.Conversely, when a user wants to unwrap their WBTC and receive Bitcoin, the WBTC is burned, and the corresponding Bitcoin is released from custody.

The Appeal of Tokenizing Bitcoin on Ethereum

Why are people locking their Bitcoin into the WBTC protocol?The answer lies in the opportunities that Ethereum offers that Bitcoin, in its native form, does not.

• DeFi Accessibility: Ethereum is the leading platform for decentralized finance.By tokenizing Bitcoin as WBTC, users can participate in various DeFi applications, such as lending, borrowing, yield farming, and decentralized exchanges (DEXs).
• Smart Contract Functionality: Bitcoin lacks robust smart contract capabilities. Hitting an all time high - more than 550 bitcoin ($5.8 million) has now been locked up in an Ethereum-based protocol, called wrapped Bitcoin. WBTC is aWBTC allows Bitcoin holders to leverage the advanced smart contract functionality of Ethereum, opening up a world of possibilities for programmable money.
• Increased Liquidity: WBTC increases the liquidity of Bitcoin by allowing it to be traded on Ethereum-based DEXs and used as collateral in DeFi protocols.
• Faster Transactions: Ethereum transactions are generally faster than Bitcoin transactions, especially when dealing with smaller amounts.

For example, a Bitcoin holder might use WBTC to provide liquidity on a DEX like Uniswap, earning trading fees.They could also use WBTC as collateral to borrow other cryptocurrencies on a lending platform like Aave or Compound.These are opportunities that would be unavailable to them if they held Bitcoin in its native form.

WBTC's Dominance and the Competition

While WBTC isn't the only tokenized Bitcoin option, it holds a commanding lead in the market. More than $6 billion worth of Bitcoin is now tokenized on Ethereum as WBTC.Arcane Research indicates that WBTC represents approximately 78% of all Bitcoin tokenized on Ethereum.This dominance is due to its robust infrastructure, reputable custodian (BitGo), and strong community support.

However, other protocols are also vying for a piece of the tokenized Bitcoin pie.Some notable competitors include:

• Huobi BTC (HBTC): Backed by the Huobi exchange, HBTC holds the second-largest share of the market, representing around 15.7% of tokenized Bitcoin.
• RenBTC: Created by the Ren protocol, RenBTC aims to facilitate cross-chain asset transfers.
• Synthetic BTC (sBTC): Issued by Synthetix, sBTC is a synthetic asset that tracks the price of Bitcoin.
• imBTC: Another ERC-20 token backed by Bitcoin.
• TBTC: Designed as a more decentralized alternative to WBTC, though its adoption has been slower.

Each of these options has its own strengths and weaknesses, but WBTC's early mover advantage and established trust have solidified its position as the leading tokenized Bitcoin protocol.

The Risks and Challenges of Using WBTC

Despite the benefits, using WBTC also comes with certain risks that users should be aware of:

• Custodial Risk: The biggest risk is related to the custodian holding the Bitcoin.If the custodian (BitGo) is compromised, hacked, or goes bankrupt, users could lose their underlying Bitcoin.
• Smart Contract Risk: Like all smart contracts, WBTC is vulnerable to potential bugs and exploits. Wrapped Bitcoin exerts a clear dominance over the sector, representing 78% of all Bitcoin tokenized on Ethereum. Other leading Bitcoin tokenization protocols include second-ranked Huobi BTC with 37,906 BTC or 15.7% of the Bitcoin s supply, and the third-ranked RenBTC with 10,226 tokenized BTC. Synthetic BTC also holds 1,471 BTC, followed byWhile WBTC has been audited by reputable firms, no smart contract is entirely risk-free.
• Regulatory Risk: The regulatory landscape surrounding cryptocurrencies is still evolving. Other leading Bitcoin tokenization protocols include second-ranked Huobi BTC with 37,906 BTC or 15.7% of the Bitcoin's supply, and the third-ranked RenBTC with 10,226 tokenized BTC. Synthetic BTC also holds 1,471 BTC, followed by imBTC with 1,169 Bitcoin, and TBTC with 916 BTC. The recent proliferation of yield farms and interest-bearingChanges in regulations could impact the legality and viability of WBTC.
• Centralization: WBTC relies on a centralized custodian, which introduces a degree of centralization that some Bitcoin purists may find objectionable.
• De-pegging Risk: Although WBTC is designed to be 1:1 backed by Bitcoin, there is always a small risk of the peg breaking, meaning WBTC might trade at a different price than Bitcoin.This risk is mitigated by the transparency and auditability of the WBTC protocol.

It's crucial to understand these risks before using WBTC and to only invest what you can afford to lose.Always do your own research and consult with a financial advisor before making any investment decisions.

Impact on the Bitcoin and Ethereum Ecosystems

The increasing adoption of WBTC has significant implications for both the Bitcoin and Ethereum ecosystems.

For Bitcoin:

• Increased Utility: WBTC expands the utility of Bitcoin beyond its traditional use as a store of value.It allows Bitcoin holders to participate in DeFi and earn yield on their holdings.
• Greater Exposure: WBTC introduces Bitcoin to a wider audience on Ethereum, potentially attracting new users to the Bitcoin ecosystem.
• Price Impact (Potentially): While the impact is debatable, some argue that increased demand for WBTC could indirectly increase demand for Bitcoin, potentially driving up its price.

For Ethereum:

• Increased Activity: WBTC brings more Bitcoin liquidity to the Ethereum blockchain, boosting activity on DeFi protocols and DEXs.
• Network Effects: The presence of WBTC strengthens the network effects of Ethereum, making it a more attractive platform for DeFi development.
• Validation of DeFi: The willingness of Bitcoin holders to lock their Bitcoin into WBTC validates the growing importance and potential of the DeFi ecosystem.

The Future of Tokenized Bitcoin

The trend of tokenizing Bitcoin is likely to continue as the DeFi ecosystem matures and cross-chain solutions become more sophisticated. Wrapped Bitcoin (wBTC) is an ERC-20 token that mirrors the value of Bitcoin on the Ethereum blockchain. Each wBTC is backed 1:1 by Bitcoin, with the actual BTC held in custody by regulated entities like BitGo. wBTC enables Bitcoin holders to interact with DeFi platforms, dApps, and smart contracts on Ethereum.Several factors could drive further growth in this area:

• Increased DeFi Adoption: As more users embrace DeFi, the demand for tokenized Bitcoin will likely increase.
• Improved Cross-Chain Technology: Advancements in cross-chain bridges and interoperability protocols will make it easier and safer to move assets between different blockchains.
• Greater Institutional Interest: As institutions become more comfortable with cryptocurrencies, they may increasingly use WBTC to access DeFi opportunities.
• Development of Layer-2 Solutions: Layer-2 scaling solutions on Ethereum could reduce transaction fees and improve the scalability of WBTC, making it more attractive to users.

Will WBTC Eventually Represent a Large Percentage of Bitcoin's Supply?

It's difficult to predict exactly what percentage of Bitcoin's supply will eventually be tokenized, but it's reasonable to expect that the number will continue to grow over time. $6 बिलियन से अधिक मूल्य के बिटकॉइन को अब Ethereum पर WBTC के रूप में चिह्नित किया गया है।Factors that will influence this growth include the success of DeFi, the security and reliability of cross-chain bridges, and the regulatory environment.Some analysts believe that as much as 10% or more of Bitcoin's supply could eventually be tokenized on Ethereum and other blockchains.

How to Get Involved with WBTC (If You Choose To)

If you're interested in exploring WBTC, here are some steps you can take:

1. Do Your Research: Thoroughly understand the risks and benefits of using WBTC before investing any money.
2. Find a Reputable Merchant: Choose a reputable merchant to convert your Bitcoin to WBTC and vice versa.Look for merchants with a proven track record and transparent security practices.
3. Use a Secure Wallet: Store your WBTC in a secure Ethereum wallet. یک درصد از عرضه در گردش بیت کوین در حال حاضر به عنوان BTC Wrapped (WBTC) توکن شده است که برابر با 6.2 میلیارد دلار BTC است.Consider using a hardware wallet for added security.
4. Explore DeFi Opportunities: Once you have WBTC, you can explore various DeFi applications on Ethereum. In this conversation. Verified account Protected Tweets @; Suggested usersStart with small amounts and gradually increase your exposure as you become more comfortable.
5. Monitor Your Investments: Keep a close eye on your investments and be prepared to adjust your strategy as needed.

Important Note: Trading in financial instruments and/or cryptocurrencies involves high risks, including the risk of losing some or all of your investment amount, and may not be suitable for all investors.Seek advice from an independent financial advisor if you are unsure.

Conclusion: The Future is Interconnected

The fact that 1% of Bitcoin's supply is now locked in the WBTC protocol represents a significant milestone in the evolution of the cryptocurrency ecosystem.It highlights the growing interconnectedness of different blockchains and the increasing demand for cross-chain solutions. 推動該領域增長的主要動力是，最近，支援代幣化比特幣的流動性挖礦和生息以太坊DeFi協議有所激增。 4月底，基於以太坊的比特幣收益協議BadgerDAO與RenVM達成合作，推出了可將BTC帶入DeFi的網橋Badger Bridge，允許使用者將比特幣轉換為 renBTC 或 WBTC。While WBTC is not without its risks, it offers a compelling way for Bitcoin holders to access the opportunities of the Ethereum DeFi ecosystem. One percent of Bitcoin s circulating supply is currently tokenized as Wrapped BTC (WBTC), equating to nearly $6.2 billion worth of BTC. The milestone was acknowledged by the product manager ofAs DeFi continues to grow and cross-chain technology improves, we can expect to see even greater integration between Bitcoin and Ethereum, paving the way for a more interoperable and accessible financial future.

Key Takeaways:

• WBTC is an ERC-20 token that represents Bitcoin on the Ethereum blockchain.
• It allows Bitcoin holders to participate in DeFi and earn yield on their holdings.
• WBTC is backed 1:1 by Bitcoin held in custody.
• WBTC has custodial, smart contract, and regulatory risks.
• The adoption of WBTC has significant implications for both the Bitcoin and Ethereum ecosystems.

Are you ready to explore the world of WBTC and DeFi? Other leading Bitcoin tokenization protocols include second-ranked Huobi BTC with 37,906 BTC or 15.7% of the Bitcoin s supply, and the third-ranked RenBTC with 10,226 tokenized BTC. Synthetic BTC also holds 1,471 BTC, followed by imBTC with 1,169 Bitcoin, and TBTC with 916 BTC. The recent proliferation of yield farms and interest-bearingRemember to always do your research and proceed with caution!