Known as Wrapped Bitcoin (WBTC) in the Ethereum network, this cryptocurrency unit has a value equivalent to BTC. Wrapped Bitcoin, or WBTC, essentially combines certain features of both BTC and ETH, operating within the Ethereum network.
Listed in 70 active markets and exchanges, WBTC was launched to meet the Bitcoin needs of Ethereum investors and the DeFi sector. According to information on the Wrapped Bitcoin website, WBTC is the first Ethereum-based cryptocurrency indexed at a 1:1 ratio with Bitcoin.
Known for its supply and circulation volume adjusted according to the leading cryptocurrency, Bitcoin, WBTC meets the BTC needs of DeFi investors. Providing significant liquidity to the Ethereum ecosystem, WBTC remains a favorite cryptocurrency among Ethereum investors, despite later imitations like renBTC, as evidenced by the current amount of WBTC in circulation.
One of the primary functions of WBTC is to transfer the liquidity of Bitcoin and investors wanting to buy and sell BTC to the Ethereum network and decentralized cryptocurrency exchanges. Investors, unable to transfer Bitcoin on the Ethereum network, instead purchase WBTC, which exposes them to the price of BTC and enables Bitcoin transactions on the ETH network.
At the time of writing this article, Wrapped Bitcoin ranks as the 22nd largest cryptocurrency. A significant increase in the number of WBTC purchasers is evident, with its 24-hour trading volume exceeding 40 million dollars.
WBTC, priced equivalent to the leading cryptocurrency, Bitcoin, is trading at $10,618 as of this writing. There are only 94,197 WBTC in circulation, contributing to a total market value of over 1 billion dollars.
The total supply of Bitcoin has exceeded 18.5 million, giving the leading cryptocurrency a total market value of 50 billion dollars. Although the craze in the DeFi sector has significantly decreased, the continuous increase in demand for Wrapped Bitcoin is known to have spurred an increase in WBTC supply.
To purchase WBTC through the Binance cryptocurrency exchange, simply follow these steps: