Binance holds Bitcoin in reserve and issues BTCB on BNB Smart Chain at a 1:1 ratio, so users can hold and use Bitcoin value in BNB Chain applications.

Binance Bitcoin (BTCB) is a BEP-20 token on BNB Smart Chain backed 1:1 by Bitcoin held in reserve by Binance.

Binance issues and manages BTCB, a Bitcoin-backed token for BNB Smart Chain.

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Binance Bitcoin

# Binance Bitcoin Total value locked Methodology

## 1. Overview

Total value locked (TVL) is measured as the total value of assets deposited into Binance Bitcoin to back the outstanding supply of BTCB. BTCB is a wrapped Bitcoin asset issued on BNB Smart Chain, where each BTCB is backed 1:1 by Bitcoin held in reserve. TVL is utilized as a leading indicator of the adoption and utility of Binance Bitcoin within the decentralized finance ecosystem.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events from the BTCB contract, covering BNB Smart Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Mint and burn tracking

- **Purpose**: Identification of all minting and burning transactions for the BTCB asset.
- **Logic**: ERC-20 `Transfer` events for the BTCB asset address are parsed. Transactions where the sender is the null address are classified as mints, which represent new BTCB entering circulation. Transactions where the recipient is the null address are classified as burns, which represent BTCB being redeemed and removed from circulation.
- **Key fields**: `block_timestamp`, `value` (representing the transfer amount), `from_address`, and `to_address`

### Component B: Net daily supply and decimal correction

- **Purpose**: Calculation of the net change in BTCB supply on a daily basis and normalization of the values.
- **Logic**: Mint amounts are treated as positive values and burn amounts are treated as negative values. These amounts are normalized by decimal precision using asset metadata. The normalized amounts are then aggregated by day to determine the net daily change in outstanding supply.
- **Key fields**: `amount` and `timestamp`

### Component C: Cumulative outstanding supply calculation

- **Purpose**: Determination of the total outstanding supply of BTCB for any given day.
- **Logic**: A running cumulative sum of the net daily changes is calculated over time. The total outstanding supply of BTCB in circulation is represented by this cumulative sum.
- **Key fields**: `net_amount` and `outstanding_supply`

### Component D: USD conversion and final aggregation

- **Purpose**: Conversion of the outstanding supply to USD and formatting of the final TVL metric.
- **Logic**: The daily outstanding supply of BTCB is multiplied by end-of-day asset prices to calculate the total value locked in USD. Missing days are filled with the last known value or zero-filled where appropriate to ensure a continuous daily time series.
- **Key fields**: `outstanding_supply`, `price_usd`, and `tvl`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value locked (TVL)

Total value locked (TVL) — value deposited into the project's applications.

Binance BitcoinBTCB

Total value locked

Total value locked

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