Wrapped Bitcoin (WBTC) went live on Ethereum at the beginning of 2019. It is an ERC-20 token backed 1:1 with real Bitcoin and is intended to capture the benefits that can result from the tokenization of the Bitcoin cryptocurrency. Such as integrating Bitcoin’s liquidity with Ethereum-based decentralized applications (dapps) and decentralized exchange.
Last week, MakerDao announced WBTC was to be included in their collateral family as an increasingly important role for BTC in the Ethereum DeFi ecosystem becomes apparent. With more and more options for bringing BTC over to the leading smart contract platform emerge, BTC holders can now begin to capitalize on the diverse range of DeFi protocols available in the Ethereum economy.
This may be the cause of the current Wrapped Bitcoin market cap. An increase could be observed at the time of writing reaching more than 11M USD.
Full report:
https://dappradar.com/blog/how-wrapped-bitcoin-trading-is-evolving-on-kyberSo, someone creates a token 1:1 with bitcoin price and they want to use it as valid collateral.
The tokens creation has a cost of $2 approx, what does give that high price to that token? Maybe its because there are only 1300 tokens on circulation...
But to be honest this will never be valid collateral, or not for this community.