CRYPTO MOVERS AND PRICES
Crypto is marginally lower this morning as BTC seems to have established a new range between USD 11,000 and 11,500. Spot volumes again are unimpressive and relatively unch'd from yesterday.
Crypto Story of the Day
Wrapped-BTC (WBTC) Has Seen Its Market Cap Remain Consistently Above USD 1B For The Better Part Of Two Weeks - The Growth Of WBTC Is Nearly Perfectly Correlated With DeFi Growth
WBTC is an ERC-20, BTC-backed stablecoin. We wrote on the coin a month ago where after nearly two years of seeing negligible growth, market cap had exploded with the wave of DeFi interest. Effectively customers are now able to use their BTC as collateral for Ethereum-based lending protocols without losing the economic interest in their coin. Since the end of June, WBTC market cap has grown from USD 12M to nearly 1.2B.
The rise of WBTC underscores just how drastic the growth of these DeFi protocols has been. Emerging out of nowhere, WBTC was a completely forgotten platform and has now seen asset gathering that rivals some of the best months at the World's largest USD stablecoin Tether. In an attempt to attract assets, other protocols are debating creating similar products that will allow interoperability with BTC on their chains. We'll only point out that saying that WBTC growth is correlated to DeFi interest would be a massive understatement.
WBTC asset growth kicked off within days of Compound launching their COMP token and sparking the wave of interest in lending platforms. Without the birth of this new dynamic, it is most likely that WBTC market cap would have remained in the USD 10M range.