Bitget App

Trade smarter

What is Wrapped Bitcoin

What is Wrapped Bitcoin (WBTC)?

Wrapped Bitcoin basic info

Name:Wrapped Bitcoin

Ticker:

WBTCBuy now

Introduction:

What Is Wrapped Bitcoin?

Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin on Ethereum. It represents Bitcoin in a 1:1 ratio, where each WBTC token is backed by an equal amount of Bitcoin held in reserve by custodians. These custodians are reputable entities responsible for safeguarding the underlying Bitcoin and minting new WBTC tokens when users deposit Bitcoin, and more.

The primary purpose of WBTC is to enable Bitcoin holders to access the world of DeFi. Since Ethereum has become more popular in decentralized finance, a significant portion of DeFi applications, protocols, and services are built on its blockchain. By wrapping Bitcoin in an ERC-20 token format, it becomes compatible with the Ethereum network, opening up a multitude of possibilities for the holders.

Resources

Whitepaper: https://www.wbtc.network/assets/wrapped-tokens-whitepaper.pdf

Official website: https://wbtc.network

How does Wrapped Bitcoin work?

The process of obtaining Wrapped Bitcoin is relatively straightforward. Users who wish to access DeFi services using their Bitcoin start by depositing their BTC into a designated custodial address. These custodians are reputable and audited entities responsible for holding the Bitcoin reserves in a secure and transparent manner.

Once the Bitcoin is verified and confirmed, an equivalent amount of WBTC is minted and issued to the user's Ethereum address. This WBTC is now fungible and can be seamlessly traded, lent, borrowed, and utilized within various DeFi protocols. It retains its one-to-one peg with the original Bitcoin, which ensures that WBTC holders can always redeem it for the same amount of Bitcoin as the reserve.

The interoperability of WBTC with Ethereum's smart contracts empowers users to access a diverse range of decentralized financial products, including decentralized exchanges, lending platforms, yield farming, and more, while still benefiting from Bitcoin's underlying value and security.

What Determines Wrapped Bitcoin's Price?

The wrapped Bitcoin price (WBTC price today) is influenced by various factors, primarily dictated by its peg to Bitcoin (BTC). WBTC is an ERC-20 token on the Ethereum blockchain, backed one-to-one with Bitcoin. Consequently, the current WBTC price often mirrors its underlying asset, Bitcoin. In other words, the real-time wrapped Bitcoin price and the BTC/USD exchange rate are closely tied. The WBTC/USD exchange rate is highly dependent on the BTC/USD exchange rate. Additionally, the WBTC market cap—a reflection of the total value of all WBTC tokens in circulation—plays a crucial role in determining WBTC price stability.

You can explore the WBTC price history through the Wrapped Bitcoin price chart, which usually shows a strong correlation with Bitcoin's price movements. However, the WBTC trading price isn't solely influenced by the Bitcoin to USD rate. Other factors like liquidity, demand in decentralized finance (DeFi) platforms, and overall market sentiment in the cryptocurrency sphere also play a role. WBTC price analysis often includes considerations like its utility in DeFi lending platforms, derivatives platforms, and decentralized exchanges (DEXs). Live WBTC price updates and WBTC price forecast models are also shaped by the regulatory landscape and any significant crypto market news.

The creation (minting) and destruction (burning) of WBTC tokens are managed by a decentralized autonomous organization (DAO). This organization involves various merchants and custodians, ensuring that WBTC price live updates reflect the actual BTC reserves, thereby adding another layer of trust and stability to the WBTC exchange rate.

So, if you find yourself asking, "How much is wrapped Bitcoin?", the answer usually lies in its peg to Bitcoin, its utility in Ethereum-based DeFi ecosystems, and broader market conditions. Whether you're looking at the WBTC price in EUR, GBP, or any other currency, these key factors will guide you in understanding the price of wrapped Bitcoin.

Conclusion

In conclusion, Wrapped Bitcoin has revolutionized the cryptocurrency landscape by enabling Bitcoin holders to tap into the vast potential of DeFi without relinquishing ownership of their valuable BTC. Its seamless integration with the Ethereum ecosystem has brought new opportunities for both Bitcoin and DeFi enthusiasts, fostering further collaboration between the two worlds.

It's important to note that like any other cryptocurrencies, Wrapped Bitcoin carries its own risks and it's always wise to do your own research and exercise caution while investing.

Current price:

$95,703.53More price details

All-time high:$107,463.99

All-time low:$3,330.12

WBTC supply and tokenomics

Circulating supply:134,015.92 WBTC

Total supply:134,015.92 WBTC

Max supply:0 WBTC

Market cap:$12.83B

Fully diluted market cap:$12.83B

Tokenomics:

Uniqueness

By virtue of being the oldest and largest cryptocurrency on the market, Bitcoin can boast a massive user base and a liquidity pool of several dozen billion dollars. However, its blockchain functionality is relatively basic by modern standards.

Unlike Bitcoin, Ethereum was built from the ground up to support more advanced use cases by utilizing the technology of smart contracts, giving rise to an entire industry dubbed “decentralized finance.”

Ethereum and products derived from it offer their users such advanced financial instruments as lending and insurance, which do not rely on trusted intermediaries.

By “wrapping” BTC in the ERC-20 standard, WBTC enables full integration of a Bitcoin-like asset into this advanced environment of financial decentralized applications, bringing along the immense liquidity associated with the BTC market.

In addition, Wrapped Bitcoin makes the job significantly easier for exchanges, wallets and payment services that work with Ethereum: instead of having to run two separate nodes for ETH and BTC networks, they can support WBTC operations with just an Ethereum node.

Finally, Ethereum blockchain’s faster average blocktime — about 15 seconds vs 10 minutes respectively — increases the speed with which WBTC can be transacted, compared to actual bitcoins.

Token utility

As Wrapped Bitcoin tokens adhere to the ERC-20 token standard, one can use them across the broader Ethereum ecosystem. That includes trading them on decentralized exchanges — like Uniswap, 1Inch, Sushiswap — and exploring decentralized finance opportunities through protocols and platforms supporting WBTC.

DeFi opportunities for WBTC range from lending and borrowing to yield farming, token swapping and liquidity pools. Various protocols and platforms support Wrapped Bitcoin, including Aave, Balancer, Compound, MakerDAO. Some of these providers may issue platform-native governance tokens as an extra incentive.

Using WBTC as colateral for a crypto-backed loan can be a significant option for businesses. Additionally WBTC holders can earn interest from supplying liquidity, although the APY will be relatively low.

Another option for WBTC is to engage in margin trading, where Wrapped Bitcoin is used to margin trade Ethereum, stablecoins and other ERC-20 tokens. Users deploy WBTC to enhance fund security while trading. That process is fully non-custodial and powered by smart contract technology.

Links

Website:https://wbtc.network

Whitepaper:https://www.wbtc.network/assets/wrapped-tokens-whitepaper.pdf

X:https://twitter.com/WrappedBTC

GitHub:https://github.com/WrappedBTC/bitcoin-token-smart-contracts

Buy Wrapped Bitcoin for $1Buy WBTC now

What is the development prospect and future value of WBTC?

The market value of WBTC currently stands at $12.83B, and its market ranking is #10253. The value of WBTC is not widely recognized by the market. When the bull market comes, the market value of WBTC may have great growth potential.

As a new type of currency with innovative technology and unique use cases, WBTC has broad market potential and significant room for development. The distinctiveness and appeal of WBTC may attract the interest of specific groups, thereby driving up its market value.

What will the price of WBTC be in 2025?

Based on WBTC's historical price performance prediction model, the price of WBTC is projected to reach $99,497.6 in 2025.

What will the price of WBTC be in 2030?

In 2030, the WBTC price is expected to change by +6.00%. By the end of 2030, the WBTC price is projected to reach $131,357.61, with a cumulative ROI of +35.47%.

Reminder: Just like all cryptocurrency investments, investors must closely monitor the market performance of WBTC and be aware of the associated risks. The world of cryptocurrencies is full of uncertainties, so thorough research and preparation are essential.

WBTC price WBTC price prediction WBTC news

Is WBTC worth investing or holding? How to buy WBTC from a crypto exchange?

If you want to buy WBTC, the following information may be helpful for your investment decisions:

In the last 7 days, the price of WBTC has fallen by -8.09%, leading to negative returns for most WBTC investors. The market is currently pessimistic about the price trend of WBTC.

It is important to note that the current price of WBTC has retreated by -10.94% from its all-time high. This coin is currently considered medium-risk, and its price may rebound or continue to fall.

Additionally, it's important to understand that each coin has its own optimal times for buying and selling. The optimal time to invest is dynamic: when a coin is undervalued, it's wise to adopt a buying strategy; when it becomes overvalued, you should decisively sell the coin.

To decide whether WBTC is worth investing in, you need to consider various market factors such as the overall trend of the cryptocurrency market, the project's fundamentals, its current market valuation, and whether the current price is suitable for buying. If the project's fundamentals suddenly change or the price becomes excessively high, you should adjust your investment strategy and trading operations accordingly.

Your investment decisions should be based on your own risk tolerance, financial status, market analysis and research, especially the timing of your investments. Correct timing can ensure more reliable returns. Keep in mind that investing in WBTC or any cryptocurrency comes with certain risks and uncertainties.

Regardless of your outlook on the development prospects and future trends of WBTC, if you want to buy or sell WBTC, you can consider Bitget for your trading needs. The best place to buy WBTC is an exchange that offers hassle-free and secure transactions, combined with a user-friendly interface and high liquidity. Every day, millions of users choose Bitget as their trusted platform for crypto purchases.

Investing in Wrapped Bitcoin has never been easier. Simply sign up on Bitget, complete the identity verification process, and make payments using bank transfers, debit cards, or credit cards, all while ensuring security through crypto wallets. This is a widely adopted method to buy Wrapped Bitcoin. Here's a step-by-step guide on how to buy Wrapped Bitcoin on Bitget.

Buy WBTC now Coin buying guide

How to get Wrapped Bitcoin through other methods？

Using cash to buy Wrapped Bitcoin is not the only way to obtain Wrapped Bitcoin. If you have the time to spare, you can get Wrapped Bitcoin for free.

Learn how to earn Wrapped Bitcoin for free through the Learn2Earn promotion.

Earn free Wrapped Bitcoin by inviting friends to join Bitget's Assist2Earn promotion.

Receive free Wrapped Bitcoin airdrops by joining ongoing challenges and promotions.

All crypto airdrops and rewards can be converted to Wrapped Bitcoin through Bitget Convert, Bitget Swap, or spot trading.

What is Wrapped Bitcoin used for and how to use Wrapped Bitcoin?

The use case of Wrapped Bitcoin may expand as the crypto market and the project itself develop. Currently, you can use WBTC to achieve the following goals:

Arbitrage by trading WBTC: Since WBTC is a frequently traded cryptocurrency, the price of WBTC is always fluctuating. Earn more WBTC by buying low and selling high on the exchange. Bitget spot market provides a variety of WBTC trading pairs to fully meet your needs.

Earn by staking WBTC: You can also generate income through financial management methods such as staking WBTC or lending WBTC. Bitget Earn offers a variety of financial products designed to help you earn more income from your WBTC.

Send or pay WBTC: If you want to give WBTC to your friends, a charity, or a fundraiser, or you want to pay someone with WBTC, you can quickly and easily send WBTC to the recipient through their payment address.

You can also go to the official website of the Wrapped Bitcoin project to learn more about the use cases of WBTC. For example, find out if the project supports the use of within its community or ecology, or if the project allows you to purchase physical or virtual products in .

Trade WBTC WBTC Earn