The aggregate market capitalization of Bitcoin-backed Ethereum tokens in October rose 21% to 149,550 coins ($2.06 billion).
In dollar terms, the October increase stood at $359 million. A month earlier this figure was $737 million, CoinDesk writes, citing data from Dune Analytics.
The growth in the ‘Bitcoin on Ethereum’ capitalization occurred amid a cooling of the hype around the DeFi space.
The futures price of the DeFi-token index in early November fell to a four-month low. Trading volumes on decentralized exchanges in October fell by a quarter. According to DeFi Pulse, total value locked in DeFi protocols over this period declined from $11.43 billion to $11.16 billion.
Analyst Ryan Watkins of Messari attributed demand for tokenized Bitcoins primarily to yield farming in DeFi projects. After the September peak, yields in them collapsed.
“Curve and Uniswap were major drivers of growth. In both cases, yields have substantially declined,” he explained.
Despite slower Bitcoin tokenization, it remained above its issuance pace. According to Coin Metrics’ calculations, 26,256 coins were mined in October and 26,267 tokenized.
As of writing, WBTC’s share in the Ethereum-tokenized Bitcoin segment stands at 80.7%. renBTC, 12.6%, HBTC, 3.93%.
Market share of ‘Bitcoin on Ethereum’. Source: Dune Analytics.
To date, 152,931 tokenized Bitcoins have been issued on the Ethereum network. Their market value stands at $2.35 billion.
Total number of ‘Bitcoin on Ethereum’. Source: Dune Analytics.
In mid-October, the CoinList updated a record for the daily issuance of WBTC, issuing 4,997 tokens for $57.1 million.
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