- Wrapped Bitcoin allows Bitcoin to be used on Ethereum DeFi platforms
One thousand Wrapped Bitcoin (WBTC) worth USD 9 million were printed in a single day, indicating a rise in Bitcoin-based decentralized finance (DeFi) activity on the Ethereum network. Notably, this 1,000 WBTC is larger than the size of the entire Bitcoin Lightning Network, which currently only has 927 Bitcoins.
Essentially, Bitcoin itself cannot be used on Ethereum-based DeFi platforms, since Bitcoin is not compatible with the Ethereum network. The solution is tokens like WBTC, where users deposit Bitcoin and receive the equivalent in WBTC, which is an Ethereum token.
The printing of USD 9 million of WBTC in a single day brings the total amount of WBTC to USD 20.7 million, and this continues a trend of Bitcoin becoming increasingly popular on DeFi platforms. Basically, Bitcoin is by far the most popular cryptocurrency, and numerous users of DeFi platforms are choosing to use Bitcoin instead of Ethereum for lending and borrowing purposes.
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