Tokenized Bitcoin is booming, with the increasing demand from DeFi combined with BTC's recent meteoric price rising has resulted in 3 Bitcoin tokenization protocols ranking among the 70 largest crypto markets.

According to popular market information aggregators CoinGecko and CoinMarketCap, Wrapped Bitcoin (WBTC) currently ranks as the 13th-largest market boasting a capitalization of $4.04 billion, with roughly 0.6% of Bitcoin's supply currently locked in the protocol. Huobi BTC (HBTC) ranks 56th with a market cap of $660 million, followed past the 63rd-ranked renBTC (RENBTC) with a capitalization of $510 one thousand thousand.

All the same, the emergence of Bitcoin (BTC) tokenization protocols as top-ranked crypto markets is problematic for data aggregators every bit it risks double-counting a portion of Bitcoin's supply when estimating the full marketplace capitalization of the crypto sector.

At the time of publication, WBC, HBTC, and RENBTC represent more than 1.4% of the combined crypto capitalization excluding Bitcoin, according to bothCoinGecko and CoinMarketCap.

With many analysts expecting Bitcoin to go on pushing into new all-time highs, and the DeFi sector'due south appetite for tokenized BTC growing significantly in recent months, the share of crypto capitalization represented past Bitcoin tokenization services is likely to continue expanding.

Speaking to Cointelegraph, CoinGecko COO and co-founder Bobby Ong confirmed that "the tokenized BTC market capitalization [...] is included in the total cryptocurrency market capitalization calculation" provided by his visitor. He added:

"We are aware of the double-counting issue and have an internal to-practise to try to correct for this event [...] This was a phenomenon that has become more than prevalent in the past twelvemonth as more than and more tokenized assets are created on Ethereum. We hope to take a solution for this out presently."

Bitcoin currently represents more than 65% of the combined crypto capitalization.

Cointelegraph contacted CoinMarketCap for comment, just did not receive a response as of printing time.