Wrapped Bitcoin (WBTC) Ultimate Guide: DeFi Bridges and Gate Trading Full Analysis

In today’s thriving digital asset landscape, Bitcoin holders are no longer satisfied with simple storage and trading. An innovative solution called Wrapped Bitcoin (WBTC) has emerged, acting as a bridge that successfully connects Bitcoin’s enormous value with the vibrant DeFi (Decentralized Finance) ecosystem on Ethereum.

This article will provide a comprehensive analysis of how WBTC works, its market performance, and focus on how to safely and conveniently trade WBTC on the world-leading exchange Gate, allowing you to seize the dual opportunities of the digital financial era.

What is Wrapped Bitcoin (WBTC)?

Simply put, Wrapped Bitcoin (WBTC) is an ERC-20 token issued on the Ethereum blockchain, maintaining a 1:1 value peg with Bitcoin (BTC). This means that each circulating WBTC is backed by an equivalent amount of Bitcoin as reserve assets.

Its core value lies in bringing Bitcoin’s liquidity into the Ethereum smart contract ecosystem. By holding WBTC, Bitcoin investors can participate in rich DeFi applications on Ethereum—such as lending, liquidity mining, staking, and earning yields—without selling their original BTC. This completely breaks the limitations of Bitcoin’s native functionality and opens up a new utility domain for the world’s largest cryptocurrency.

How WBTC Works: Minting, Burning, and Trust Model

WBTC’s operation relies on a collaborative network composed of multiple roles:

1. Custodian (Custodian): Usually trusted institutions like BitGo, responsible for securely storing the underlying Bitcoin reserves backing WBTC. Reserve status is regularly audited and publicly verified to ensure transparency.
2. Merchant (Merchant): Approved merchants handle user minting and burning requests. When users want to convert BTC into WBTC, merchants facilitate the process, with custodians locking BTC and issuing an equivalent amount of WBTC on Ethereum.
3. User: Users initiate “wrapping” or “unwrapping” operations through merchants. Wrapping involves depositing BTC and receiving WBTC; unwrapping involves returning WBTC to redeem the corresponding BTC.

While this process introduces a trust assumption in centralized custodians, strict audits and multi-signature schemes aim to balance security and functionality.

Why Choose WBTC? The Passport to DeFi

For Bitcoin holders, holding WBTC means:

• Unlock DeFi yields: Directly use WBTC in mainstream DeFi protocols like Uniswap, Curve, Aave for lending, providing liquidity, and earning trading fees and governance tokens, achieving asset compounding growth.
• Enjoy high liquidity: As the earliest and largest cross-chain Bitcoin solution, WBTC has the deepest and broadest liquidity pools on Ethereum, with low slippage and easy exchanges.
• Follow Bitcoin’s price: WBTC is highly correlated with Bitcoin, with a historical correlation coefficient exceeding 0.99. This allows users to participate in DeFi while nearly fully retaining exposure to Bitcoin price fluctuations.

WBTC Market Performance and Latest Price (December 24, 2025)

As of December 24, 2025, according to Gate market data, WBTC’s market performance is as follows:

• WBTC / USDT spot price: $86,858.7, with a 24-hour change of 0.61%
• Total circulating supply: approximately 125,333.48 WBTC
• Total market cap: $10.88 billion

Similar to Bitcoin, WBTC has experienced significant market volatility. Its all-time high reached $125,932, while the lowest was $3,139.17. The current price remains in a high consolidation phase, with substantial market depth and ongoing institutional interest (such as frequent whale address operations) affirming its status as a core crypto asset.

How to Trade WBTC on Gate Exchange?

As a top-tier trading platform with over 12 years of industry experience serving millions worldwide, Gate offers an excellent gateway for trading WBTC.

1. Register and Deposit: Visit the Gate official website or download the app, complete registration and identity verification. You can fund your account via fiat channels or directly deposit USDT, BTC, or other cryptocurrencies.
2. Find Trading Pairs: Search for “WBTC” in the trading market, and you will see multiple pairs such as WBTC/USDT. Gate offers spot and derivatives trading products.
3. Start Trading: Use the intuitive trading interface to place limit or market orders based on your market analysis and begin your WBTC trading journey.
4. Secure Asset Management: After trading, you can store WBTC in Gate’s secure wallet or withdraw to your private Ethereum wallet to participate in on-chain DeFi activities.

Gate’s advantages include high liquidity, secure asset custody, user-friendly interface, and competitive trading fees, enabling both beginners and professional traders to manage their WBTC assets efficiently.

Future Outlook and Risk Warnings

With increasing demand for blockchain interoperability and ongoing DeFi evolution, WBTC’s importance as a key infrastructure is expected to further grow. Industry leaders like Sun Yuchen have publicly emphasized WBTC’s huge potential in expanding Bitcoin’s financial use cases [reference:15].

However, investors should also be aware of related risks: the centralization risk of the custodial model, smart contract technical risks, and the inherent high volatility risk of the cryptocurrency market. Conduct independent research before participating and make cautious decisions based on your risk tolerance.

Conclusion

Wrapped Bitcoin (WBTC) cleverly combines Bitcoin’s store of value with Ethereum’s programmable financial capabilities, representing a crucial innovation in the crypto ecosystem. It is not only the main bridge for Bitcoin into DeFi but also offers new strategies for asset appreciation.

For investors seeking to capture both Bitcoin’s long-term value and DeFi’s frontier yields, exploring and trading WBTC on reliable, efficient platforms like Gate is undoubtedly a key step. Start your journey with Gate now and harness the dynamic momentum of the digital finance integration era.