The total amount of Wrapped Bitcoin (WBTC) locked in the Kyber Network had almost tripled in a single day, DeFi Pulse reported. The sudden increase in WBTC reserves could have been a reaction to the news that the DeFi protocol Compound has added WBTC to its offerings.
WBTC sees its activity triple on the Kyber Network
Wrapped Bitcoin (WBTC), one of the most interesting tokenization projects on the Ethereum blockchain, has started gaining serious traction in the past couple of days. Launched in late 2018 by crypto custodian BitGo and decentralized liquidity pool Kyber Network, WBTC is the first ERC20 token with a 1:1 peg to Bitcoin.
Created in order to open up more opportunities for decentralized exchanges, WBTC enabled the usage of Bitcoin by having use cases such as loans and token payments. With the Kyber Network being one of the two first merchants to distribute the token, it was the one that saw the most WBTC activity since its launch.
However, the total amount of WBTC in the Kyber Network’s reserves tripled in a single day, going from 50 BTC on July 17 to 154 BTC on July 18. As the Kyber Network is an on-chain liquidity protocol, it means that the amount of BTC its users contributed to its reserves grew more than 200 percent in 24 hours.
— DeFi Pulse ? (@defipulse) July 17, 2019
Compound listing could have affected WBTC activity
The huge increase in WBTC reserves left many Kyber Network users wondering what could have caused such a massive movement. While it’s hard to pinpoint the exact factors that led to this growth,