Following a recent massive rise of decentralized finance (DeFi) projects – and because of it – some analysts expect wrapped bitcoin to continue being a growing bridge over which bitcoin (BTC) would be ported to Ethereum (ETH).
Crypto market data provider Messari noted a stablecoin migration to Ethereum “en masse, making fiat value interoperable with ETH based applications.” To this, they added: “Now, drawn by the allure of Ethereum’s booming DeFi ecosystem, we’re beginning to see a similar trend play out with Bitcoin.”
What they go on to describe is a bridge by which BTC holders moved “more than half a billion dollars worth of bitcoin onto Ethereum.” The leading bridge here, according to the firm, is wrapped bitcoin provided by major crypto custody company BitGo, wBTC.
As previously reported, wBTC went live on the Ethereum blockchain in January 2019. It’s an ERC20 token meant to represent bitcoin and is reportedly backed one-to-one by BTC. It comes with several advantages, such as faster transfer than bitcoin, as well as its integration with the entire Ethereum ecosystem, including dapps (decentralized apps), smart contracts, and yes, the booming DeFi that comes with it. wBTC is held at Bitgo Trust.