BitGo’s WBTC Holds Over 65% Market Dominance Despite Criticism Over Holding Model: Report

Wrapped Bitcoin (WBTC), the wrapped version of Bitcoin developed by BitGo, Kyber Network and Ren, continues to dominate the tokenized BTC market despite criticism surrounding the project, according to Binance Research's latest monthly report.

The packaged token represents Bitcoin on a 1:1 basis on other blockchains such as Ethereum and Solana. This allows users to access BTC in the decentralized financial landscape.

WBTC has more than 65% market share

Binance Research records that WBTC's weekly transactions have reached a record high of 123,200. It saw more than 100,000 weekly transactions for the first time for consecutive weeks. WBTC supply has risen to over 152,400, representing over 65% market share.

The current WBTC benchmark is commendable for many reasons. One of the developer's decisions was to partner with BitGlobal and Tron founder Justin Sun in August to expand the property's operations to other jurisdictions such as Hong Kong and Singapore. The partnership aims to redesign the WBTC's security structure.

However, various members of the crypto community have criticized Sun's involvement in the common power. BitGo CEO Mike Belshe tried to calm the issue by assuring users that the founder of Tron cannot move money alone. Following the community backlash, crypto projects such as Sky (formerly MakerDAO) proposed to remove WBTC from the guarantee.

After weeks of criticism from community members, other companies have emerged with their bundled Bitcoin tokens. A popular one is Coinbase's cbBTC, a packaged bitcoin launched on top of Ethereum and Base. Shortly after its initial launch, cbBTC became the third-largest bitcoin mined.

Ethereum has become inflationary.

Another issue from the market report is that Ethereum is currently trending towards inflation. Last month, inflation hit a two-year high.

Ethereum says it will use an ultrasonic currency system that will withstand inflation while ETH strengthens its purchasing power. However, according to a report by Binance Research, the second largest cryptocurrency is moving away from the crypto zone.

Following the Denkun update, the network saw a drop in transaction fees, resulting in fewer ETH coins being burned. With ETH's 30-day yield hovering around 0.74%, market observers believe the coin is entering the bullish zone.

Binance Research stated that if there is a significant increase in network activity on the network, the price will return to the lower level.