DeFi
Solana welcomes $WBTC via Wormhole Bridge for DeFi
- Innovators and Solana users can now access Wrapped Bitcoin on Layer 1 via Wormhole.
- This integration is one of many that Wormhole has facilitated, fueling diversity in the memecoin market.
Bitcoin has found a new home as Wrapped Bitcoin (WBTC) goes live on the Solana ecosystem, with Wormhole acting as a bridge. As noted in a series of X articles, the collaboration opens possibilities for decentralized finance (DeFi) applications built on Solana.
WBTC via Wormhole extends functionality to Solana
According to a previous report from Crypto News Flash, WBTC previously operated as an ERC-20 token, allowing users to leverage its functionality within the Ethereum blockchain. With Wormhole’s Interoperability Bridge, WBTC’s reach extends to Solana’s thriving DeFi ecosystem.
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ICYMI $WBTC is multi-chain and continues to live @Solanamade possible by Wormhole.
Bringing $WBTC to Solana means it can be used across Solana’s entire DeFi ecosystem, including on @DriftProtocol, @KaminoFinanceAnd @orca_so.
Take a closer look ⬇️🧵 pic.twitter.com/UURP4Uk8wd
– Wormhole (@wormhole) June 24, 2024
This means that WBTC can be seamlessly integrated with popular Solana DeFi protocols such as Drift Protocol, Kamino Finance, and Orca, amplifying their offerings.
Wormhole acts as an invisible gateway between Ethereum and Solana, facilitating the smooth transfer of WBTC. Through Portal, Wormhole’s token bridge, the original WBTC tokens are secured in a smart contract while a corresponding WBTC token wrapped in the portal is minted on Solana.
This integration injects substantial liquidity into the Solana ecosystem. As Wormhole revealed, WBTC worth an estimated $150,000 is now available for multi-chain deployments.
Wormhole’s influence extends well beyond WBTC’s integration with Solana. The interoperability platform for applications and multichain bridges allows developers to access liquidity. This provides fertile ground for use cases encompassing DeFi, non-fungible tokens (NFTs), governance, and more.
Quoting earlier Statements from Crypto News FlashThe Wormhole platform’s user base spans over 30 leading blockchain networks.
The team behind Wormhole has an excellent reputation, having earned the trust of renowned industry players including Circle and Uniswap. In April, the Fantom Foundation announced the launch of its stablecoin USDC.e on the Wormhole platform. This was done in collaboration with Circle and Wormhole, as Crypto News Flash reported earlier.
Notably, Wormhole has facilitated over $35 billion in transfers via over a billion cross-chain messages, a testament to its reliability and scalability.
Solana’s Multi-Pronged Approach to Bitcoin Adoption
Although the arrival of WBTC marks a crucial milestone, it is only one facet of Solana’s broader strategy to adopt Bitcoin. The Solana Network is developing a cutting-edge cross-chain bridge scheduled to launch in Q3 2024, citing earlier Statements from Crypto News Flash. This bridge, powered by the Zeus network and its Zeus Program Library (ZPL), aims to directly connect the Solana and Bitcoin ecosystems.
With the integration of WBTC into the Solana ecosystem, the broader crypto community will closely monitor the impact on the native token, SOL. At press time, SOL is trading at $137.95, demonstrating an 8.4% increase over the past 24 hours, according to MarketCap data.
The market capitalization is estimated at $63.4 billion, while trading volume increased by 38% to over $3 billion.
With greater expansion on the horizon for the Solana ecosystem, SOL could soon see further price increases.
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