According to onchain data, there’s now 69,836 synthetic bitcoin tokens (over $700 million) circulating on the Ethereum blockchain. Out of the six synthetic bitcoin token projects, wrapped bitcoin (WBTC) commands the largest number of coins with over 63% and 44,622 WBTC.
Since then, that metric has jumped more than 83% as there’s now 69,836 synthetic bitcoin tokens in the wild on September 7, 2020. Dune Analytics shows there are seven synthetic BTC projects but tBTC has zero coins minted, while the other six projects have between 45 BTC to over 40,000.
The top project minting the most synthetic BTC is the Wrapped Bitcoin (WBTC) protocol which commands roughly 44,622 BTC to-date or 63%. The Ren Protocol’s renBTC has over 23% of the aggregate total of synthetic BTC with 16,268 renBTC in circulation today.
WBTC has gained a lot of traction, and on Monday reports detail that the organization Alameda Research obtained 70% of the WBTC minted in August. Alameda was cofounded by the FTX CEO Sam Bankman-Fried.
A great percentage of synthetic bitcoin is circulating among holders while the rest is used on platforms such as Compound, Balancer, Aave, and Uniswap.
Synthetic bitcoin trades take place on a few centralized exchanges like FTX and Binance has revealed listing WBTC this week. On decentralized exchange (dex) platforms, Synthetic bitcoin trades are happening on 0x, Bancor, Synthetix, Balance, Curve, and Uniswap.
Despite the massive growth and popularity, Ethereum cofounder Vitalik Buterin detailed that he has concerns about synthetic bitcoin projects.
“I continue to be worried about the fact that these wrapped BTC bridges are trusted,” Buterin wrote on August 16. “I hope they can all *at least* move to a decently sized multi-sig,” the developer added.
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