The volume of tokenized bitcoin renBTC for the week increased by 200%
The tokenized versions of Bitcoin on the Ethereum blockchain continue to grow rapidly. As noted by DeFi Pulse, the volume of assets in renBTC tokens of the Ren project from August 13 to 17 grew from $ 59 million to $ 172 million.
renBTC is the second most requested mechanism for integrating bitcoin into the Ethereum blockchain after Wrapped Bitcoin (WBTC) with a 22% share. Until the last rise, it was about 10%. Users of such tools usually tend to use bitcoins in services from the field of decentralized finance (DeFi), which are causing a lot of excitement recently..
Ren’s products allow for the transfer of liquidity between blockchains such as Bitcoin, Ethereum and Bitcoin Cash. Unlike WBTC, which uses a trusted custodian system to issue tokens, renBTC and other Ren assets are issued and destroyed using smart contracts..
There are currently about 29,000 wBTC and over 10,000 renBTC. According to the Btconethereum portal, the total volume of tokenized bitcoins is 42,932 BTC or over $ 500 million. This corresponds to more than 1% of Ethereum’s capitalization and 0.25% of Bitcoin’s capitalization.
Along with renBTC, its own REN protocol token is experiencing rapid growth. It traded around $ 0.17 at the beginning of the month and reached an all-time high above $ 0.56 on August 18.
Samson Moe, Chief Strategy Officer of Blockstream, argues that the rise of tokenized bitcoins is evidence that Ethereum blockchain users need the first cryptocurrency. “The reason Bitcoin remains tokenized for use on Ethereum is because of its stability and reliability. This is why Ethereum users are choosing to use tokenized bitcoin over Ether in their DeFi transactions, ”Moe said in a recent podcast..
Earlier it was noted that the rate of bitcoin tokenization exceeded the rate of its own emission.