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- AnetaBTC is a fully on-chain, decentralized protocol that allows Bitcoin to be directly wrapped on the Ergo and Cardano blockchains.
- Similar to the wBTC on the Ethereum network, Bitcoin holders can mint their coins on Cardano without selling and without any third-party custodian involvement.
The seventh largest digital asset by market capitalization, Cardano (ADA) has unlocked a new unlimited utility through the top crypto asset, Bitcoin. Notably, the minting of wrapped Bitcoin on the Cardano network dubbed cBTC has finally taken shape after months of meticulous developments. The cBTC development is expected to significantly grow the Cardano’s total value locked, which stands at approximately $169.79 million.
Wrapped Bitcoin on Cardano
According to the latest market data provided by Binance-backed Coinmarketcap, Cardano (ADA) had a market capitalization of approximately $15.5 billion on Monday. Bitcoin, on the other hand, had a total of $578 billion. As Cardano takes pride in smart contract adoption, the Bitcoin market has lagged in DeFi development. As a result, Bitcoin investors can gap on the powerful Cardano smart contract technology through the cBTC minting program.
The Bitcoin liquidity on the Cardano network is expected to open up a whole new utility for both digital assets. AnetaBTC is a fully on-chain, decentralized protocol that allows Bitcoin to be directly wrapped on the Ergo and Cardano blockchains.
The anetabtc protocol continues to conduct several testnets to ensure free bugs in the ecosystem. For instance, the protocol previously indicated that a public testnet on the cBTC minting process is underway by April 20. Meanwhile, mobile developments to ensure seamless cBTC minting is expected to take place through the upcoming testnets.
Similar to the WBTC on the Ethereum network, Bitcoin holders can mint their coins without selling and without any third-party custodian involvement. Notably, wrapped Bitcoin on the Cardano network is expected to increase the adoption of yield-earning products, and derivatives such as futures and options.
The most interesting feature is that cBTC is non-custodial and holders can redeem in a ratio of 1:1 for the Bitcoin coins. Users of the cBTC are set to enjoy low fees transactions, thus unlocking the prowess of Bitcoin on the Cardano network.
Bitcoin has a new home.
Minting cBTC on Cardano… 😇 pic.twitter.com/tzU1O43bw6
— anetaBTC 👼 On-chain Wrapped BTC (@anetaBTC) April 15, 2023
The announcement has positively been adopted by the Cardano community including the founder Charles Hoskinson.
https://t.co/apfv3QXOOl pic.twitter.com/gvjAj7z6Eh
— Charles Hoskinson (@IOHK_Charles) April 15, 2023
Earlier this month, the anetaBTC partnered with Ikigai Technologies to conduct a security audit on its wrapped Bitcoin programs. Notably, Ikigai Technologies is a development and research Web3 protocol focused on the Cardano ecosystem.
Bigger Picture
The Cardano (ADA) price has gained approximately 25 percent YTD to trade around $0.44 on Monday. Nevertheless, the ADA market is down over 85 percent from its ATH, around $3.09, achieved in late 2021. As the altcoin season teases following Bitcoin’s pump to around $30k, the Cardano market is expected to rally further fueled by utility and speculation.
