In January of last year, Bitgo, Ren, and Kyber network announced the creation of wrapped Bitcoin.
It was going to be an ERC-20 pegged to the price of Bitcoin to operate in the Ethereum network.
The original idea was to bring the liquidity of BTC into Ethereum and bolster interoperability between blockchains.
In the beginning, it managed to attract enough attention to have 558 BTC locked for the first part of 2019.
The attention it gathered was almost immediate, and it has grown at an astounding rate.
Today it has over 15,000 BTC locked in or 173 million dollars, according to DeFi Pulse.
This has led to an increase in the adoption of Wrapped Bitcoin.
In the second half of 2019, power players such as Compound, Uniswap, Gnosis, and many others launched trading platforms in WBTC.
This means demand for the asset will only increase as time moves on. There are more than 20 platforms now working with WBTC, and there is no sign of it slowing down.
The picture below shows all exchanges and DeFi products accepting WBTC.
Notably, now WBTC is part of the basket of assets used in DAI. This attracted attention from all over the crypto space.
Another popular wrapped coin is Zcash. As we know, Zcash is a privacy-focused coin.
The transactions done from Zcash wallet to Zcash wallet are almost impossible to trace and has become one of the success stories of the privacy niche.
In October of 2019, Zcash was tokenized into the Ethereum network. This will bring the demand and liquidity of the Zcash network to Ethereum.
But the benefits run both ways; now, Zcash users can access the many DeFi services launched on the Ethereum network, the main space for DeFi right now.
The move has attracted even more attention, and there are even more wrapped coins in the works.
Ethereum is not the only coin benefiting from this. Early this year, the first wrapped Bitcoin in the Bitcoin cash network began to circulate.
The faster transaction speed and lower fees of BCH have made an attractive alternative.
The name of the wrapped Bitcoin is BTC2, and it has begun to gain traction across exchanges.