Crypto Analytics Firm Messari Evaluates $500M BTC Tokenized on ETH Network

With more than half a billion dollars worth BTC are already tokenized, Messari estimates $500M BTC have been tokenized for DeFi protocols.

By · Sep 2, 2020 . 6min read

Messari tokenized BTC news

According to a crypto analytics firm, Messari, it estimates the tokenization of Bitcoin (BTC) worth $500 million on the ETH network. The tokenization is for its usage in the Defi protocols. However, the firm’s latest report points out that this figure depicts just 0.3% of Bitcoin’s $216 billion market cap. This indicates golden opportunities for projects that promote Bitcoin’s migration onto Ethereum to obtain significant value.

According to DeFi Pulse, popular Bitcoin tokenization protocols WrappedBTC (WBTC) and RenVM are the 9th and 10th largest DeFi projects by locked funds, with $453 million and $232.4 million, respectively. RenVM has seen an explosion in usage over the past month. Additionally, the value of funds locked in the protocol is gaining approximately 470%, from $40.9 million.

According to the report, WBTC has witnessed this surge in the past month as the value of its locked funds has risen by 157%. This is indicating a massive increase in demand for Bitcoin in the Defi market. Therefore, Messari tweeted about all the report findings. Additionally, it has tagged both Keep Network (tBTC) and Ren (renBTC) in the tweet. This is because some of the major projects are trying to bring BTC to ETH protocol.

Messari more on Keep’s tBTC Protocol

A trustless Bitcoin tokenization protocol,tBTC by Keep, has gone offline, shortly after its launch. This seems shocking as the platform was preparing to release the second version of tBTC after the security audits and trial round. The tBTC protocol was a result of a collaboration between Summa and Keep Network. Summa is a platform that provides software for cross-chain communication. The Keep Network is an Ethereum-powered solution for privately and securely storing data off-chain. Several smaller projects have also entered the Bitcoin tokenization space over recent months. PieDAO’s BTC++ pool has attracted 58 Bitcoin since launching in April.

Earlier, Messari, a crypto data and research provider, announced that it secured $4 million in funding led by Uncork Capital. It witnessed new participation from Coinbase Ventures and former Coinbase CTO Balaji Srinivasan, according to a statement from the New York-based firm. Additionally, Uncork fund’s founder, Jeff Clavier, will join Messari’s board of directors.

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