• The cBTC wrapped Bitcoin token has gone live on Cardano, allowing users easy access to DeFi protocols on the blockchain.
• According to Messari’s report, Cardano’s Total Value Locked (TVL) has experienced a remarkable increase of 198.6% year-to-date (YTD).
• Minswap emerged as the most utilized decentralized application (dApp) on Cardano during the second quarter of 2023.
Bitcoin Liquidity Enters The Cardano Ecosystem
The cBTC wrapped Bitcoin token has gone live on Cardano, allowing users easy access to DeFi protocols on the blockchain. This move aims to draw Bitcoin (BTC) holders to the emerging Cardano decentralized finance (DeFi) network. With the anetaBTC protocol, users can create cBTC tokens and utilize them for activities like funding, trading, or supplying liquidity within Cardano’s test network.
Cardano’s Growth in DeFi Activity
Several improvements in decentralized finance (DeFi) have contributed to the growth of these protocols on Cardano since the beginning of 2023. A recent report by Messari reveals that Cardano’s Total Value Locked (TVL) has experienced a remarkable increase of 198.6% year-to-date (YTD) as of June 30th this year.
This surge in TVL is attributed to the expansion of Cardano’s ecosystem and introduction of its decentralized finance products. During Q2, Minswap emerged as the most utilized decentralized application (dApp) with processing 1 million transactions per month in both May and June which marked a significant 167% quarter-on-quarter rise surpassing jpg store in terms of dApp transactions.
Advantages Of Wrapped Tokens
The wrapped tokens mirror Bitcoin’s value at a 1:1 ratio but operate on the Cardano blockchain. As we know that most blockchains lack interoperability and in such cases these wrapped tokens make it easy to transfer value across different blockchains without using native coins for each one thus creating an enabling environment for different users to access different DeFi protocols without having their own native coins
ADA HODLers Rejoice
Cardano’s native crypto ADA has been hovering around $0.29 however whale accumulation for ADA has been going strong with many feeling optimistic about its future prospects given its current performance amidst bullish market sentiment
Conclusion
The launch of cBTC token is expected to bolster further growth for DeFi projects running on top of the Cardano blockchain while also providing convenience for BTC holders looking to take advantage of other DeFi products available through this platform