Sunday, July 25, 2021

Four of the top 70 crypto assets by market cap are Bitcoin

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Tokenized Bitcoin is booming, with the growing demand from DeFi mixed with BTC’s latest meteoric worth rise has resulted in three Bitcoin tokenization protocols rating among the many 70 largest crypto markets.

In line with well-liked market information aggregators CoinGecko and CoinMarketCap, Wrapped Bitcoin (WBTC) at the moment ranks because the Thirteenth-largest market boasting a capitalization of $4.04 billion, with roughly 0.6% of Bitcoin’s provide at the moment locked within the protocol. Huobi BTC (HBTC) ranks 56th with a market cap of $660 million, adopted by the 63rd-ranked renBTC (RENBTC) with a capitalization of $510 million.

Nonetheless, the emergence of Bitcoin (BTC) tokenization protocols as top-ranked crypto markets is problematic for information aggregators because it dangers double-counting a portion of Bitcoin’s provide when estimating the whole market capitalization of the crypto sector.

On the time of publication, WBC, HBTC, and RENBTC symbolize greater than 1.4% of the mixed crypto capitalization excluding Bitcoin, in keeping with bothCoinGecko and CoinMarketCap.

With many analysts anticipating Bitcoin to proceed pushing into new all-time highs, and the DeFi sector’s appetite for tokenized BTC rising considerably in latest months, the share of crypto capitalization represented by Bitcoin tokenization providers is more likely to hold increasing.

Talking to Cointelegraph, CoinGecko COO and co-founder Bobby Ong confirmed that “the tokenized BTC market capitalization […] is included within the complete cryptocurrency market capitalization calculation” offered by his firm. He added:

“We’re conscious of the double-counting subject and have an inner to-do to attempt to right for this subject […] This was a phenomenon that has turn into extra prevalent up to now 12 months as increasingly more tokenized belongings are created on Ethereum. We hope to have an answer for this out quickly.”

Bitcoin at the moment represents greater than 65% of the mixed crypto capitalization.

Cointelegraph contacted CoinMarketCap for remark, however didn’t obtain a response as of press time.