Holders of the IOTA token will be able to participant in the ongoing DeFi craze on the Binance network. This has become possible after a partnership between the two parties enabling users to interact on Binance Smart Chain via wrapped IOTA.
Wrapped IOTA on BSC
Launched as a competitive network to Ethereum but providing significantly lower fees for transactions, Binance Smart Chain has enjoyed a rapid increase in popularity and use cases. Several months down the road, BSC even surpassed Ethereum in terms of daily transaction count.
The BSC growth continues as earlier today, the IOTA Foundation announced an integration on Binance’s brainchild.
“With the release of this feature, the IOTA token’s liquidity officially lives on multiple networks. Now IOTA developers can begin to expand the functionality of the IOTA Token onto applications that will eventually bridge IOTA to multiple ecosystems.” – reads the statement.
The integration became possible with the help of the so-called wrapped tokens. It’s the process of taking an asset from one network and enabling it to operate on another. In this particular case, users will be able to transfer their IOTA tokens to be locked in custody and receive Binance IOTA on a 1:1 basis.
The Binance Bridge makes the swap, and users can utilize the newly-minted IOTA tokens to “stake, yield, earn, and participate in a growing number of applications taking advantage of Binance Smart Chains ecosystem of products and services.”
According to the statement, this would make the IOTA ecosystem more decentralized as the token liquidity will be available on other networks. Additionally, the IOTA Foundation sees the BSC integration as just the “first step in growing liquidity across multiple chains, while also preparing for the ability for other assets to live on the IOTA network.”
IOTA Price Update
Following a few failures along the way, the IOTA team has been trying to reclaim some of its old glory by several updates in recent months. They have positively impacted the price of the native cryptocurrency.
IOTA entered the new year at about $0.30 but has skyrocketed by roughly 400% to its current price tag of $1.45. Naturally, the asset’s market cap has also expanded to over $4 billion, and IOTA is placed within the top 30 coins by that metric.
Nevertheless, IOTA is still unable to break its all-time high of $5.25 marked in late December 2017, unlike many other crypto coins. As of writing these lines, the digital asset is about 70% away from its peak.
IOTA/USD YTD. Source: TradingView