Cryptocurrencies: DeFi Industry Grows Exceptionally in 2020

Cryptocurrencies: DeFi Industry Grows Exceptionally in 2020

Along with the DeFi rally, demand for Wrapped Bitcoin is increasing.

The largest cryptocurrency exchange of the world in terms of market capitalization is Binance. It is lignin another token to support the growth of DeFi, or Decentralized finance.

WBTC Wrapped Bitcoin is a new ERC-20 token pegged to the price of BTC (Bitcoin). According to an Aug. 31 blog post by the exchange, it is now tradeable on Binance.

Binance users can now begin deposit Wrapped Bitcoin as well as trade the toke against ETH (Ether) and Bitcoin, as officially announced.

Wrapped Bitcoin is an Ethereum-based token. It represents Bitcoin.

One Wrapped Bitcoin is equal to Bitcoin. WBTC is a joint initiative by major DeFi players like Set Protocol, MakerDAO, Compound, Kyber Network, Dharma, Ren, and BitGo. The token is to bring more liquidity into the Ethereum network with Bitcoin. Moreover, it is to implement it in the Decentralized Finance industry.

DeFi

The token allows Bitcoin holders to keep holding bitcoin while using DeFi applications like Compound to lend or borrow money, as part of WBTC’s functionality in DeFi.

Opposed to DeFi, traditional finance, or decentralized finance, envisions a brand-new monetary system built on top public blockchains. DeFi platforms connect lenders and borrowers, directly eliminating credit checks. Furthermore, it enables digital assets to be collateralized. Thus, DeFi provides decentralized lending as its key benefit.

In 2020, the Decentralized Finance industry has been growing exponentially. The total value locked in the market hit $9 billion on Aug. 30. Uniswap is the most widely used decentralized exchange on Ethereum. Thus, it surpassed significant crypto exchange Coinbase in daily volume on Aug. 30. That is what Cointelegraph reported earlier today.

DeFi continues to see a meteoric rise. Moreover, the demand for the Wrapped Bitcoin is up. It hit $274 million in circulation by mid-August.

This year, Binance has been actively embracing the Decentralized Finance Market.

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