BTC and ETH derivatives have emerged as dominant players in the crypto market, securing top positions in terms of market capitalization. Bitcoin currently holds a 51.9% market dominance, while Ethereum stands at 17%. This surge in value has contributed significantly to the overall growth of the cryptocurrency market.
Derivative tokens linked to BTC and ETH have gained popularity in recent years. Wrapped Bitcoin (WBTC), for example, was introduced in 2019 and now ranks as the 17th largest market capitalization in the crypto landscape, with a circulating supply of 155,434 WBTC.
There are several other BTC derivative tokens, all pegged 1:1 with BTC. Bitcoin Bep2 (BTCB) on the BNB Chain boasts a circulating supply of 54,011 BTCB, and Avalanche blockchain circulates 3,747.32 BTCb. Other smaller market cap derivative tokens, like SBTC and BBTC, also exist.
ETH derivatives also play a significant role in the market. The leading token is Lido’s staked ether (STETH), with a market valuation of $35.78 billion, making it the sixth-largest cryptocurrency. STETH holds a 70.89% share of the liquid-staking ETH derivatives market.
Rocket Pool’s liquid staking protocol secures $4.14 billion with 1.13 million ETH, positioning its RETH token as the 58th largest market cap. In addition, 2.89 million ETH is invested in 25 different ether derivative token protocols. Collectively, the tokens across all 27 liquid staking derivative protocols represent 1.88% of the crypto economy’s total value.
The prominence of BTC and ETH derivative tokens highlights their growing significance and influence in the crypto economy. The rise of these tokens reflects the demand for alternative ways to trade and invest in BTC and ETH, while also engaging with the wider ecosystem.
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