Bitcoin Tokenized on Ethereum Approaches $1 Billion

Bitcoin Tokenized on Ethereum Approaches $1 Billion


More investors are using their Bitcoin to invest in high yielding DeFi farming incentives as the amount of tokenized BTC has surged to record levels.



Tokenized, or wrapped, Bitcoin has gained so much popularity this year that there is almost a billion dollars’ worth of it circulating now. The parabolic surge over the past couple of months has been driven by the DeFi token farming boom which has resulted in a 1200% increase in collateral locked in the sector since the beginning of 2020.

90,000 BTC on ETH

Full-stack software developer going by the twitter handle ‘lastmjs.eth’ (@lastmjs) has noted that a large milestone is approaching.

According to, there are a total of 89,000 Bitcoins on the Ethereum network at the time of writing. At today’s prices, this works out at $956 million, just shy of a billion dollars.

Bitcoin on Ethereum
Chart –

Of that total, 65% is wrapped Bitcoin, or wBTC, which is the most popular standard at the moment. renBTC is the second most popular method of tokenizing Bitcoin and there is 21,400 BTC currently using this method to access Ethereum based protocols and dApps.



The rapidly approaching milestone is bullish for Bitcoin in that it is being used for other investments as opposed to just hodling, and bullish for Ethereum in terms of economic activity on the network.

Why Wrap Bitcoin?

Since most of DeFi is based on Ethereum, BTC will not natively work with it so it needs to be wrapped, or tokenized into ERC-20 form.

A wrapped Bitcoin is equivalent to a Bitcoin except that it can now be used across a wide range of DeFi platforms and dApps that operate on the Ethereum network. A new wave of DeFi farming incentives is emerging offering liquidity pools using various versions of tokenized BTC which allow investors to use their holdings without selling their Bitcoin.

According to, which recently launched its own Index, the amount of collateral locked into wBTC has surged 1300% over the past 90 days to an all-time high of $630 million.

RenVM, which is the interoperable network and custodian for renBTC and DeFi assets, has seen even greater growth of 2700% over the same period with its TVL also hitting an all-time high of $270 million.

There are several lesser-known tokenized versions of Bitcoin and these include HBTC, sBTC, imBTC, and pBTC, but they all essentially do the same thing.

To get the daily price analysis, Follow us on TradingView

Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Martin Young

Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.

Published at Wed, 16 Sep 2020 06:03:02 +0000

Swap your tokens below to get the best prices across all decentralized crypto exchanges.

Spread the word. Share this post!

Leave a comment