Is Wrapped Bitcoin Really the Market cap King of Decentralized Finance?


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There are many different data aggregators in the cryptocurrency space. If the rankings by DeFiMarketCap are to be believed, the top project is quite interesting. None other than Wrapped Bitcoin is leading the pack, which shouldn’t be too surprising. 

Wrapped Bitcoin Reigns Supreme

Depending on where one looks for data, the DeFi rankings may look very different from one another. CoinGecko, for example, includes the likes of Chainlink in these rankings. A bit odd, considering how the project’s technology is designed for price feeds, and not necessarily decentralized finance. As such, there is always debate as to whether or not Chainlink deserves to be part of the rankings.

On DeFiMarketCap, things look a bit different. It keeps track of 1,317 different tokens in this space, yet Chainlink isn’t one of them. What is remarkable is how it also keeps tabs on the Uniswap liquidity pools. After all, those pools have their own native tokens, thus it is worthwhile including them. 

BlocDesk DMC
Source: DeFi Market Cap

Going back to the overall rankings, Wrapped Bitcoin claims the top spot. It is not too surprising to see a tokenized version of Bitcoin dominate the DeFi space. Bitcoin has, by far, the most liquidity to provide among all cryptocurrencies. Additionally, no one will deny the addition of Wrapped Bitcoin to DeFi has been beneficial to the industry. 

With a current market cap just shy of $1.9 billion, Wrapped Bitcoin is well ahead of other projects. In fact, there are only 6 projects with a market cap of over $500 million in DeFi. This includes 3 pools on Uniswap, Compound, and DAI. An interesting collection of assets, but none come close to Wrapped Bitcoin as of right now.

Aggregators Remain Incomplete

One thing to take into account is how none of the DeFi token data aggregators seems to include all of the projects. DeFiMarketCap tries to do a better job, but it still misses a fair few projects. Ethereum is not the only blockchain where DeFi exists. Competition has heated up recently, with the likes of TRON, Kava, EOS, and others all making their mark on this growing industry. 

Whether this is due to a bias, or merely being unable to keep up with everything going on, remains unclear. There has been no lack of new DeFi projects in  the second half of 2020. None of them has come close to the current Wrapped Bitcoin market cap. That doesn’t mean they shouldn’t be on this list, though. 

BlocDesk DP TVl
Source: DeFi Pulse

Looking at the overall market cap of the tracked tokens, another interesting statistic becomes apparent. The reported market cap – which isn’t entirely complete on DeFiMarketCap – shows there is over $15 billion in value. Comparing this to DeFi Pulse, there’s only $12,2 billion in TVL. Both platforms can benefit from accurately reporting data for each and every DeFi project. 

The post Is Wrapped Bitcoin Really the Market cap King of Decentralized Finance? appeared first on BlocDesk.

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