Cardano-powered Wrapped Bitcoin protocol AnetaBTC has embarked upon a new era by adding new capabilities to its cBTC token.
In accordance with the announcement post, cBTC will now enable users to carry out regular transactions, obtain loans, and trade on DEXes. The integration is set to boost Cardano’s DeFi ecosystem.
A month back, AnetaBTC, the decentralized on-chain protocol that enables direct wrapping of Bitcoin on the Cardano and Ergo blockchains, launched its testnet to illustrate minting “wrapped BTC” on the blockchain.
Wrapped assets allow liquidity to be bridged from other ecosystems, and wrapping BTC on Cardano may help release liquidity from the $585 billion BTC market.
The cBTC tokens are wrapped tokens representing Bitcoin on the Cardano blockchain in a 1:1 ratio.
These asset-class tokens were created to provide a solution to the lack of interoperability between different blockchain networks.
This is achieved by allowing users to transfer value across these networks in a seamless manner, making it easy to access other DeFi protocols without the requirement for their respective native tokens.
Having said that, Cardono’s DeFi ecosystem has been bustling with activity since the start of the year, causing a jump in ADA total value locked [TVL], which increased from under $50 million to over $150 million during this time.
Despite the current market decline, transactions on Cardano DeFi apps increased to 250k per epoch from 160k transactions during the previous epoch.
The introduction of new DeFi protocols onto the network and the vibrant community of developers and users driving innovation for the protocol are credited with this extraordinary 56% rise in transaction volume.
Yevhen, a Cardano Ecosystem Ambassador recently commented on the transaction surge in the layer 1 blockchain.
Cardano’s DeFi Maintains Robust Growth
Yevhen claimed that the recent buzz around meme coins like Snek and Pepeblue has played a crucial role in the increase in transaction volume.
Pepeblue is a newly launched crypto asset on the ADA network and in its metaverse while Snek is a crypto-based on memes of snakes with interior monologue captions.
Apart from the hype around meme coins, Yevhen also credited several crypto exchanges and liquidity protocols on the Cardano blockchain which have reported significant increases in activity in recent weeks.
This includes Sundaeswap SUNDAE, Minswap [MIN], MuesliSwap [MILK], Wingriders [WRT], and Liqwid Finance [LQ].