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- iBTC spotted on Rebased could be IOTA’s version of Wrapped Bitcoin, unlocking BTC liquidity for DeFi.
- Token may also signal experimental bridges for assets like Ethereum and USDT.
- Despite innovation, IOTA’s price remains bearish, trading near $0.19.
IOTA enthusiasts were caught off guard this week after the sudden appearance of a new token called IOTA Bitcoin (iBTC) on the Rebased platform. First spotted by community member and IOTA advocate Salima, the token has already ignited speculation about whether IOTA is preparing to enter the next phase of decentralized finance (DeFi).
Could iBTC Be IOTA’s Version of Wrapped Bitcoin?
In her post on X, Salima compared the token’s debut to Wrapped Bitcoin (WBTC) on Ethereum, which is pegged 1:1 with BTC and enables Bitcoin liquidity to flow into Ethereum’s DeFi ecosystem. If iBTC follows a similar model, it could allow BTC holders to seamlessly interact with decentralized applications (dApps), lending protocols, and liquidity pools built on the IOTA network.
Such a development would represent a major leap for IOTA, which has traditionally been known for its feeless microtransactions and IoT-focused applications rather than DeFi activity.
Experimental Bridge or Test Token?
Alternatively, iBTC may not be a fully backed product—at least not yet. Some in the community speculate it could be an experimental bridge token, serving as a prototype for future interoperability with Bitcoin and other assets.
If true, this could open the door to wrapped versions of other major assets such as iETH (Ethereum) and iUSDT (Tether), effectively turning IOTA into a multi-asset DeFi hub. Even if iBTC proves to be just a test token, its existence hints at broader ambitions for the IOTA ecosystem.
Also Read: IOTA Identity Aims to Kill Passwords Forever — Here’s How It Works
Beyond iBTC: Research and Hierarchies Alpha
The iBTC buzz comes as IOTA continues to roll out new initiatives. The foundation recently launched a Research Paper Page, offering a central hub for exploring the academic science behind decentralized networks. IOTA’s research contributions are already well-documented on Google Scholar.
In parallel, the release of IOTA Hierarchies Alpha introduced an open-source tool aimed at verifying trust across users, organizations, and devices—on-chain and off-chain. The tool is designed to strengthen the security and transparency of interactions within the ecosystem.
Market Outlook: Price Pressure Persists
Despite the excitement around iBTC and new research tools, IOTA’s market performance remains underwhelming. The token fell 0.52% in a single day, trading at $0.1944, with selling pressure outweighing buying demand. For now, traders remain cautious, even as long-term holders eye the potential of iBTC as a catalyst for DeFi adoption.
Whether IOTA Bitcoin (iBTC) proves to be a wrapped Bitcoin, a bridge experiment, or a test token, its sudden emergence has the community speculating on IOTA’s DeFi future. If successful, it could mark the first domino in transforming IOTA into a broader multi-asset platform—bridging the gap between IoT technology and decentralized finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
