The consolidated price of BakktBitcoin turned out to be a good sign for traders to start accumulating. This trend is also gaining strength among institutional players.
Bakkt marks new trading record
Institutional investors and their interest in Bitcoin futures are driving the growth of derivatives exchanges such as the Chicago Mercantile exchange and Bakkt. Interestingly, the volume of futures peaked at 172 million. $ in PTS with a physical calculation, according to the data provider Skew.
This suggests how institutions can relate to the current crypto market. However, its figure lags behind the CME, which reported daily turnover of $ 262 million on September 16. USA
Volatility and cost
Bitcoin futures are showing increased activity, but the 7-day volatility of the coin has fallen to levels not seen since the end of July. Although a small jump in value increased volatility, the low volatility phase was not seen too often in the Bitcoin market. The researchers speculated that this could be a sign that Bitcoin is about to start moving.
While its turnover fell again and almost halved in a week, even as the price climbed higher on the price ladder, the spot market needed more online activity to support the potential recovery of leading cryptocurrencies.
Bitcoin tokenized on Ether
Also, do not forget that more and more investors are using their PTS to invest in high-yield DeFi projects, as the number of tokenized BTC has grown to record levels.
Tokenized or wrapped BTC has gained so much popularity this year that it is currently worth almost a billion dollars in circulation. The parabolic surge over the past couple of months has been driven by the boom in decentralized Finance tokens, which has led to a 1,200% increase in collateral in the sector since the beginning of 2020.
According to btconethereum.com, there were 89,000 Bitcoins in the Ethereum network. At today’s prices, this is$ 956 million, which is just under a billion.
Of this total, 65% is the wrapper bit, or wBTC, which is currently the most popular standard. renBTC is the second most popular tokenization method, and currently 21,400 coins use this method to access Ethereum-based protocols and dApps.
The fast-approaching stage is an optimistic one for the cue Ball, as it is used for other investments, rather than just hodling.
Why wrap BTC
Since most decentralized Finance is based on Ethereum, BTC will not work with It a priori, so it must be wrapped or tokenized in the form of ERC-20.
Wrapped, it is equivalent to the original one, except that it can now be used on a wide range of DeFi and dApps platforms that run on the Ethereum network. There is a new wave of incentives for DeFi, offering liquidity pools using different versions of tokenized BTC that allow investors to use their assets without selling Bitcoins.
There are several lesser-known tokenized versions of Bitcoin, including HBTC, sBTC, imBTC, and pBTC, but they all essentially do the same thing.