The recent DeFi bull cycle has increased the total locked value (TVL) of the popular Bitcoin tokenization protocol (BTC) Wrapped BTC (WBTC) by 900% to over $ 1 billion.

This milestone comes four weeks after the TVL for all bitcoins tokenized on Ethereum (ETH) topped $ 1 billion for the first time. The current TVL of tokenized bitcoins is nearly $ 1.5 billion, of which WBTC currently makes up a third.

Wrapped Bitcoin is currently the fifth largest DeFi protocol when it comes to TVL, and accounts for nearly 10% of locked sector pegged capital. TVL WBTC topped $ 100 million for the first time around July 8th.

Wrapped Bitcoin allows users to block BTC in exchange for WBTC, an ERC-20 token associated with Bitcoin, which gives BTC holders access to a diverse Ethereum-based decentralized economy (DeFi) ecosystem, using it as security.

In the first half of 2020, TVL WBTC surged from $ 4 million to $ 36 million, indicating a sharp increase in demand for DeFi in the third quarter.

The DeFi bubble has also benefited from other bitcoin tokenization protocols: Ren’s Virtual Machine (REN) has frozen over $ 300 million in BTC since its launch in late May.

REN’s price is up about 180% over the same period, with the token being up 14% in the last 24 hours after listing on Coinbase.

Not all tokenization protocols have been successful, and TVL PieDAO recently bounced back to below $ 1 million in May after a brief rise in July.

The Keep network, backed by A16z, has also missed out on the benefits of the recent DeFi craze, as the recently attacked tBTC protocol has been criticized for killing ether belonging to all users in the group who see a single signer go offline.

Source: CoinTelegraph