Ethereum-based DeFi protocols are increasingly attractive to bitcoin holders. 1.05 billion dollars in Bitcoin have been tokenized to access these services and generate passive revenues on Curve Finance or Aave.
In the space of a few months, the decentralized finance sector (DeFi) has experienced a real explosion. The capitalization of the various DeFi protocols is now close to $8.5 billion.
And Bitcoin is making a major contribution to this, as DeFi Pulse points out. Indeed, the tokenized Bitcoins involved in DeFi now represent nearly 1.05 billion dollars. Thus, 98,300 BTCs are participating in decentralized finance, to the tune of more than 12%.
The share of Bitcoin in the DeFi is up 150%.
By way of comparison, this amount is thus higher than the total assets committed to the DeFi four months earlier. In June, Bitcoin’s share was just 4.7%. This represents an increase of approximately 150%.
This trend reflects the growing interest of bitcoin holders in these protocols based on the Ethereum blockchain. DeFi protocols are indeed an opportunity to generate passive revenues.
But to access these financial services, Bitcoin holders must first tokenize them. Several available Bitcoin tokenization protocols allow this. These include Wrapped Bitcoin (WBTC) or RenBTC.
The WBTC and RenBTC tokenization protocols are full of Bitcoins.
The tokenization will consist in locking a Bitcoin and generating an ERC-20 token corresponding to its asset. This token will then allow the user to interact with the smart contracts of the Ethereum network.
And as DeFi Pulse illustrates, Bitcoin’s tokenization services have largely contributed to the development of the leading crypto-money in the decentralized finance sector. The number of Bitcoins in escrow (via WBTC) has more than doubled in the space of a month.
The protocol thus represents more than 56,000 of these bitcoins transformed to access Ethereum. In June, this figure did not exceed 6,000 bitcoins. RenBTC is also progressing rapidly. In 30 days, the number of BTCs jumped from 10,000 to 21,510.
But where do these crypto-actives go next? Curve Finance is the primary market for these tokenized bitcoins. Its liquidity pool allows investors to generate returns. The exchange has attracted 295 million dollars worth of bitcoins. Curve is ahead of Aave (17,800 BTC) and Balancer (9,500 BTC).