Miguel Lopez Recent data analysis shows a significant decline in the number of circulating wrapped bitcoins (WBTC) since the beginning of the year, with a staggering reduction of over 22,000 WBTC. Even more strikingly, a year-long evaluation reveals a much larger contraction, as more than 86,000 WBTC have disappeared from circulation since last July.
The WBTC project, which started in early 2019 as WBTC on the Ethereum blockchain, has been in existence for over four years. Currently, WBTC holds the 16th position among various alternative cryptocurrencies, with a market value of around $4.73 billion. Despite being the most prominent wrapped bitcoin (BTC) derivative token, its circulating supply has experienced a noteworthy decrease since the previous year.
For example, on July 13, 2022, the circulating supply of WBTC was approximately 247,832 WBTC, while today, it has dwindled to 161,460 WBTC. This represents a substantial reduction of over 86,000 WBTC, which is equivalent to a significant 34% pullback in circulating supply over the past year. Interestingly, during this time, WBTC’s market valuation has seen substantial growth, increasing from slightly above $3 billion on January 2, 2023, to an impressive figure of $4.73 billion at present.
Although the WBTC supply has decreased by over 22,000 tokens since January 2, 2023, there has been an increase of 11,010 WBTC since March 2023. In March, the WBTC supply hit a low of 150,450 WBTC.
However, it is crucial to note that much of this increase in value is attributed to the rising price of BTC. At the start of the year, BTC was valued at $16,662 per unit, and now it commands a price of $29,328, marking a significant surge of over 65%. As WBTC’s value is pegged to BTC on a 1:1 basis, its market capitalization also followed suit, despite a decrease of 22,088 WBTC in circulating supply during the same period. Consequently, out of the total 34% reduction since last year, 12.03% of the decrease occurred in 2023.
Within the Ethereum network, WBTC boasts a total of 74,191 holders, but a substantial portion of the supply—51.5% to be precise—is held by the top ten addresses. These ERC20-based WBTC tokens are spread across various decentralized finance (defi) platforms, including Aave, Compound, and Arbitrum. Moreover, the top 100 Ethereum-based addresses control 75.16% of the overall WBTC supply. Apart from Ethereum, WBTC also serves a purpose on other blockchains, such as Arbitrum, Cronos, Fantom, Polygon, Solana, and Avalanche.
What are your thoughts on the significant reduction in WBTC circulation over the past 12 months and in 2023? Feel free to share your opinions on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about WBTC circulation
What is WBTC, and how long has it been in existence?
WBTC stands for Wrapped Bitcoin, and it is a derivative token of Bitcoin (BTC) on the Ethereum blockchain. It has been around since the beginning of 2019, making it over four years old.
How has the circulating supply of WBTC changed recently?
Since the start of the year, the circulating supply of WBTC has decreased by more than 22,000 WBTC. Over the course of a year, from July to July, the circulating supply has diminished by an even more significant amount, with over 86,000 WBTC being removed from circulation.
What is the current market value of WBTC?
As of now, WBTC holds a market value of approximately $4.73 billion, making it the 16th most valuable asset among various alternative cryptocurrencies.
How much has the value of WBTC increased since the start of the year?
WBTC’s market valuation has seen substantial growth, ascending from a little over $3 billion on January 2, 2023, to $4.73 billion at present, marking impressive growth within the year.
Why did the market capitalization of WBTC increase despite a decrease in circulating supply?
The increase in WBTC’s market capitalization is primarily attributed to the appreciating price of Bitcoin (BTC). As WBTC is pegged to BTC on a 1:1 basis, its market capitalization follows suit when BTC’s price surges.
Where is the majority of WBTC held, and how is it distributed?
Within the Ethereum network, WBTC has 74,191 holders. However, 51.5% of the supply is concentrated among the top ten addresses. Additionally, the top 100 Ethereum-based addresses hold 75.16% of the total WBTC supply. WBTC is spread across various decentralized finance (defi) platforms, including Aave, Compound, and Arbitrum, among others.
In which other blockchains does WBTC find utility?
Apart from Ethereum, WBTC also serves a purpose on other blockchains, including Arbitrum, Cronos, Fantom, Polygon, Solana, and Avalanche.
More about WBTC circulation
- Wrapped Bitcoin (WBTC) on CoinGecko: https://www.coingecko.com/en/coins/wrapped-bitcoin
- Ethereum Blockchain: https://ethereum.org/en/
- Decentralized Finance (defi) on Binance Academy: https://academy.binance.com/en/articles/what-is-defi
- WBTC Token Holders on Etherscan: https://etherscan.io/token/0x2260fac5e5542a773aa44fbcfedf7c193bc2c599
- Crypto Market Trends on CoinMarketCap: https://coinmarketcap.com/
- Bitcoin (BTC) Price History on CoinDesk: https://www.coindesk.com/price/bitcoin
- Wrapped Bitcoin (WBTC) on Messari: https://messari.io/asset/wrapped-bitcoin
- WBTC Supply on Dune Analytics: https://explore.duneanalytics.com/public/dashboards/Z6NqxfrVp1K3DFemuygIUMOwLl2XDYo4S9bS10J8
- WBTC Token on Twitter: https://twitter.com/wrappedbtc
- Ethereum Network on Ethereum.org: https://ethereum.org/
