Are these Surging Defi Tokens Bitcoin Competitors?
The demand for Defi expanded as Decentralized Finance which is an Ethereum-based blockchain platform designed for lending has skyrocketed in recent days. Specifically, the price of one Defi tokens, YFI has also outperformed the trading value of the largest cryptocurrency, Bitcoin.
Moreover, a wave of Defi projects have managed to rally over $11000 and these tokens are YFI, WBTC, PBTC, SBTC, RENBTC, and BTC++. Let’s look into some insights into these tokens and bring the tokens that are priced above $11000 under one roof.
Defi Tokens Priced Above $11000
While ChainLink is considered as the most dominant Defi token with nearly 40 percent market dominance, some other tokens managed to outperform BTC too.
YFI is the governance token for yearn.finance, created by Andre Cronje in July 2020, basically launched as a set of smart contracts. These smart contracts help to shoot up the earnings by automatically changing liquidity pools according to the highest payer. In short YFI token automates the process of yield farming.
The total supply of the coins is 30,000 YFI tokens out of which 29,962 are in circulating supply. The YFI team has distributed the entire initial supply of the token in three different liquidity pools. The token gives the users only the voting rights to the users rather than dividends or any other monetary value.
Additionally, YFI recorded its all-time high price of $16,398.53 on August 20, 2020, and the lowest price of $739.44 on July 21, 2020. At the time of reporting this, YFI is trading at $13,913.46, plummeting by -2.60% within 24Hrs.
Also, the YFI team has said that these tokens cannot be mined, sold, purchased, auctioned or swap on uniswap. It is rather a token with zero financial value. However, the founder Andre Cronje in an interview said that he has no clue why the token price grew to skies.
Also know – Yearn.Finance Price Prediction 2020. Will YFI Price Reach $20,000?
WBTC is basically an ERC20, Ethereum-based token, designed to bring liquidity to Defi apps. WBTC is considered to have the same value as BTC and the BTC holders can lend their BTC in form of WBTC to earn interest.
WBTC was launched on Ethereum mainnet in January 2019 as a collaborative project between the major players in the Defi ecosystem. The project is controlled by Decentralized Autonomous Organization(DAO) called WBTC DAO.
Unlike YFI, WBTC tokens are governed by members of the WBTC DAO who decide on the major upgrades and changes to the protocol. However, the total supply is 21,000,000 with 30,798 tokens in circulation.
Currently, at the time of reporting, the token is priced at $11,506.30. The token reached its all-time high of $40,826.50 on Aug 28, 2019, and recorded its lowest of $3,330.12 on Feb 06, 2020. The WBTC tokens can be swapped with the merchants directly holding BTC and can be used for lending.
London-based Provable Things launched pTokens that enables any cryptocurrency to become compatible with any blockchain. PBTC founded by Thomas Bertani is 1:1 proxies with other cryptos onto the Ethereum mainnet. It is fully interoperable with BTC through the Bancor and Kyber integrations.
The token is priced at $11,481.41 at the time of reporting with a total supply of 21,000,000. However, the circulating supply is not updated. PBTC reached its all-time high of $23,319.54 on April 17, 2020, and the lowest price of $6,530.73 was recorded on April 16, 2020.
BTC++ is a unique token that combines several different Ethereum-based versions of Bitcoin. This helps to diminish the liquidity risk associated with any one asset. The ERC20 comprises of
- 25 percent WBTC
- 25 percent SBTC
- 25 percent PBTC
- 25 percent IMBTC
The token is priced at $11,690.36 at the time of reporting with a total supply of 89.87534000 BTC++. The token’s all-time high was recorded on August 13, 2020, of $33,633.28 and the lowest price of $10, 117.29 on Aug 22, 2020.
Siam BTC (SBTC)
SBTC is a ETH based token with a max supply of 512.530, however, the circulating supply is not known. SBTC is a protocol for trading synthetic assets on Ethereum such as gold, Bitcoin, USD. Additionally, it provides infinite liquidity, peer-to-peer contract trading, and distributed collateral pool.
At the time of reporting, the token is priced at $11,509.13. It attained its all-time high of $126987.59 on August 17, 2020, and the lowest price of $10,998.11 on August 22, 2020.
RENBTC is a one-to-one representation of Bitcoin on Ethereum that can be redeemed for BTC anytime. However, the renBTC went live in May 2020, with a total supply of 1087. The token attained its all-time high of $15.389.21 on July 29, 2020, and all-time lowest price of $9,011.76 on July 22, 2020.
While some of the above tokens surpassed Bitcoin in terms of trading value, Bitcoin remained king crypto in terms of market capitalization. In fact, Bitcoin is also being seen as a relatively stable cryptocurrency during the global COVID crisis since there’s less volatility in Bitcoin this year.