Cardano Introduces Wrapped BTC on Testnet to Enhance DeFi Access

Today, Cardano announced cBTC, its Wrapped Bitcoin token, on the Cardano testnet. The development team behind the project is striving to lure Bitcoin (BTC) users into the burgeoning Cardano DeFi ecosystem.

Utilizing Cardano’s anetaBTC protocol, cBTC will operate within the Cardano ecosystem to encourage Bitcoin liquidity. Cardano users now have the capability to mint cBTC tokens using the anetaBTC protocol, enabling them to finance, trade, or add liquidity to Cardano testnet protocols.

Moreover, the wrapped Bitcoin tokens on the Cardano blockchain will be an exact 1:1 representation of Bitcoin.

In general, wrapped tokens simplify the transfer of value across blockchains that lack interoperability. This grants users access to various DeFi protocols without the need to obtain the native tokens of said protocols.

Since the beginning of 2023, Cardano has experienced a surge in DeFi protocols supported by several enhancements to its blockchain. This has resulted in a noteworthy increase in Cardano’s total value locked (TVL), which has risen from $50 million to over $150 million.

Among the numerous DeFi protocols launched on Cardano, most of the TVL is held by DeFi exchanges, such as Indigo, Wingriders, and Minswap. Additionally, the stablecoin project Djed has garnered over $15 million in TVL since its launch in early March.

According to the Cardano-focused Twitter account ADA Whale, three narratives are poised to drive ADA’s next bull market: DeFi, governance, and scaling. The Cardano influencer predicts that by around 2024, Cardano could become a top 10 TVL chain, resulting in surprise and excitement for DeFi enthusiasts.

In terms of governance, ADA Whale anticipates Cardano to have the biggest and most well-funded DAO ever, which will grab headlines. As for scaling, it forecasts that the integration of Hydra in dApps and Leios will occur between 2024-25.