Bitcoin Liquidity Coming to Cardano with AnetaBTC on Testnet

Cardano has been growing as a DeFi destination and this could help further.

A little boy with wings representing an angel in the sky staring at Cardano ADA coin with bright yellow light coming out of it.
Created by Gabor Kovacs from DailyCoin
  • Cardano’s DeFi potential is gathering steam with new protocols and stablecoins emerging.
  • Wrapped Bitcoin is the latest offering for Cardano, thanks to AnetaBTC.
  • cBTC could potentially bring huge liquidity to DeFi platforms considering Cardano.

Cardano’s approach to building out its ecosystem has been slow yet methodical. Recent stablecoins launches have helped the project boom in DeFi, but a new project is looking to add massive liquidity.

AnetaBTC, a project that allows for the minting of cBTC on Cardano, has announced its testnet on the seventh largest coin by market cap is now live

Large Liquidity

Similar to wrapped Bitcoin (wBTC) on Ethereum, AnetaBTC will allow for on-chain wrapped BTC to come to Cardano, potentially bringing huge amounts of liquidity to the project. 

cBTC, the wrapped Cardano-based Bitcoin, will allow Cardano users to benefit from Bitcoin liquidity, opening up larger opportunities for DeFi projects. 

Additional liquidity, along with impressive stablecoin and TVL growth on Cardano, is setting the chain up for new potential in a DeFi space trying to reinvent itself.

Wrapped tokens have been a major success on Ethereum, making it easier to transfer value across blockchains and bolstering interoperability. In the case of cBTC, the interoperability between Bitcoin and Cardano through this wrapped token is predominantly about offering additional liquidity and value to Cardano.

Since the start of the year, the total value locked on Cardano has risen from under $50 million to over $150 million due partly to enhancements in DeFi protocols, stablecoins, and projects like AnetaBTC.

On the Flipside

  • AnetaBTC also launched its public testnet for the Ergo blockchain in January, bringing wrapped tokens to Ergo and showcasing its potential before going into testnet on Cardano.

Why You Should Care

Cardano’s growth has sometimes been criticized as the project makes decisions that seem to be slowing innovation. However, this more methodical stance is starting to show promise as TVL, market cap, and even coin price are rising for reasons directly linked to ecosystem growth and possibility in the blockchain ecosystem. 

Read more about Cardano’s Q1 growth this year:

Cardano’s TVL Almost Triples in Q1; ADA Market Cap Rises 50%

Read more about Crypto Bitboy’s court avoidance:

Life’s a Beach: BitBoy Crypto Skips Harassment Court Date

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Darryn Pollock

Darryn Pollock is a South African-born, UK-based journalist and content writer for DailyCoin with a focus on regulation and legislation revolving around the cryptocurrency space. He has covered the evolving crypto regulatory space, and examined how the US has approached law-making to offer protection in the growth of innovation. Darryn values traditional journalistic principles of truth, accuracy, independence, fairness, and impartiality, and has a Bachelor of Arts degree in Journalism and Law from Rhodes University in South Africa.