What is Wrapped Bitcoin (WBTC) crypto and why is it rising?

March 18, 2022 02:53 AM AEDT | By Rupam Roy

What is Wrapped Bitcoin (WBTC)?

Wrapped Bitcoin is a tokenized version of Bitcoin (BTC), and it runs on the Ethereum blockchain. WBTC is a part of the Wrapped Tokens project founded jointly by BitGo, Ren, and Kyber Network. It was launched in January 2019 after its initial announcement in October 2018.

According to the promoters, the WBTC token meets the basic compatibility standard of the Ethereum blockchain ERC-20, allowing its full integration with Ethereum’s decentralized exchanges and related services such as crypto lending, prediction markets. In addition, it is compliant with other ERC-20-enabled DeFi applications.

The WBTC token price is backed by the BTC price in a 1:1 ratio, maintained via a network of automated monitored merchants and custodians, ensuring that its price is pegged to BTC at all times. The WBTC token enables users to transfer liquidity between Bitcoin (BTC) and Ethereum (ETH) networks in a decentralized and autonomous manner.

Also Read: Why is THOR (THOR) crypto price rallying?

Why is the Wrapped Bitcoin (WBTC) token rising?

The token's price rally follows the recovery in the global crypto market from the Russia-Ukraine-linked turmoil, and the US Federal Reserve's interest rate hike by 0.25% the day before.

The market was upbeat after Fed Chair Jerome Powell’s comments that the US economy was strong and can handle the monetary tightening. The market jumped on Fed’s rate move.

The global crypto market surged 2.43% to US$1.83 trillion, while the volume rose 0.95% to US$94.53 billion in the last 24 hours to Thursday morning. Bitcoin (BTC) and Ethereum (ETH) rose 1.25% to US$40,976.09 and 4.18% to US$2,794.54, respectively, in the same period.

Also Read: Why is PancakeSwap (CAKE) crypto rising?

Source: *Data provided by CoinMarketCap.com

Bottom line:

The WBTC token has a market cap of US$11.19 billion, and its fully-diluted market cap is US$11.12 billion. The token's price surged 4.18% over the last 7 days. It is available on exchanges like Binance, OKX, FTX, etc.

Also Read: Why is The Sandbox (SAND) crypto gaining attention?

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