What Is Wrapped Bitcoin (WBTC)?
Wrapped Bitcoin (WBTC) is an ERC20 token on the Ethereum blockchain that represents Bitcoin at a 1:1 value. Designed to bridge Bitcoin’s liquidity with Ethereum’s smart contract capabilities, WBTC enables Bitcoin holders to participate in decentralized applications (dApps), DeFi protocols, and other Ethereum-based ecosystems.
👉 Discover how WBTC enhances Bitcoin’s utility
Current Price of Wrapped Bitcoin (WBTC)
As of the latest data:
- Price: $108,687.00
- 24-hour Change: -0.88%
- Market Cap: Calculated based on circulating supply (0.1M WBTC).
How Does Wrapped Bitcoin Work?
- Custody: Bitcoin is held by BitGo (custodian) and WBTC is minted on Ethereum.
- 1:1 Backing: Each WBTC is backed by an equivalent amount of Bitcoin, verified via on-chain Proof of Reserve.
- Redemption: WBTC can be burned to reclaim the underlying Bitcoin.
Key Features:
- Ethereum Compatibility: Use Bitcoin in DeFi (lending, yield farming).
- Transparency: Regular audits ensure reserves match supply.
Creators and Development
WBTC is a community-driven project developed by:
- BitGo (custodian)
- Kyber Network
- Ren Protocol
- Other Ethereum-focused teams.
Unique Advantages of WBTC
- DeFi Integration: WBTC unlocks Bitcoin for use in platforms like Aave and Compound.
- Liquidity: Tradeable on Ethereum DEXs (e.g., Uniswap).
- Smart Contract Utility: Enables programmable Bitcoin.
👉 Explore top platforms to trade WBTC
Supply Metrics
- Circulating Supply: 0.1M WBTC (fluctuates with demand).
- Total Supply: Mirrors Bitcoin held in reserve.
Buying WBTC
Supported Exchanges:
- Kraken
- Korbit
- Probit
- Tokenize
WBTC in Decentralized Finance (DeFi)
Use Cases:
- Collateral: Borrow stablecoins against WBTC.
- Yield Farming: Earn interest via liquidity pools.
- Staking: Deposit in DeFi protocols for rewards.
FAQ
1. Is WBTC safer than Bitcoin?
WBTC inherits Bitcoin’s security but adds Ethereum’s smart contract risks. Always verify custodial reserves.
2. How is WBTC different from BTC?
WBTC is an Ethereum token; BTC is native to Bitcoin’s blockchain.
3. Can I mint WBTC myself?
Only authorized merchants can mint/redeem WBTC; users trade it secondhand.
4. What’s the future of WBTC?
Growth depends on Bitcoin’s role in DeFi and Ethereum’s scalability.
5. Are there fees for WBTC transactions?
Yes, Ethereum gas fees apply for transfers and DeFi interactions.
Final Thoughts
WBTC revolutionizes Bitcoin’s utility by making it programmable and interoperable with Ethereum. Whether for trading, DeFi, or long-term holding, WBTC offers a versatile bridge between the two leading crypto ecosystems.