Over the course of the past ten months, starting from mid-December 2022, wrapped bitcoin (WBTC), a cryptocurrency designed to mirror the value of bitcoin (BTC), has witnessed a decrease in circulation by almost 23,000 coins. Presently, WBTC boasts a total of 79,839 distinct wallet holders, with a striking 73.76% of these tokens concentrated within the top 100 holders.
Leading the pack in terms of WBTC holdings are Aave and Compound, as of October 22, 2023. The total count of individual wallets holding WBTC remains at 79,839, with the circulating WBTC tokens amounting to 163,006, thus valuing the entire project at a substantial $4.88 billion. Starting from December 17, 2022, there has been a 12.31% reduction in WBTC’s circulating supply, decreasing from 185,909 WBTC to the current figure of 163,006 WBTC.
The Wrapped Bitcoin project’s inception is attributed to a collaborative effort involving Bitgo, Kyber Network, and Ren (formerly known as Republic Protocol). It was introduced to the Ethereum blockchain in late January 2019. Minting and redemption processes are facilitated through custodians, with participants in these processes required to adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations.
In terms of market capitalization, WBTC currently occupies the 16th position among the top 20 cryptocurrencies. Data analysis reveals that dominant addresses are primarily controlled by leading decentralized finance (DeFi) entities, including Aave, Compound, Arbitrum’s gateway, Polygon’s bridge, and Makerdao. The largest wallet, identified as “0x9ff,” is labeled “Aave: aWBTC Token V2,” and it holds a substantial 10.67% of the circulating WBTC.
Closely following, the address “0xccF” holds the second-largest share, denoted as “Compound: cWBTC2 Token,” with a commanding 9.84% of the circulating WBTC. Compound also has control over the third-largest wallet, “0xc3d,” which possesses 7.96% of the WBTC supply. Interestingly, every account within the top ten WBTC holders is affiliated with a DeFi protocol, collectively overseeing 52% of the circulating wrapped bitcoin.
The elite 20 WBTC addresses combine to control an impressive 59.18% of the total supply, while the top 50 addresses account for 68.09%. An astonishing 73.76% of WBTC currently in circulation, equivalent to 120,230 WBTC, is held by the top 100 holders. It’s important to note that WBTC not only holds a pioneering position in the domain of wrapped cryptocurrencies but also maintains its status as the largest wrapped project with respect to BTC reserves.
However, within the Ethereum ecosystem, there is a noticeable prevalence of wrapped or synthetic ether, surpassing the count of tokenized bitcoin by a substantial margin.
Please feel free to share your insights and perspectives on the concentration of WBTC’s circulating supply and the 10 DeFi protocols that collectively control 52% of it in the comments section below.
Frequently Asked Questions (FAQs) about Cryptocurrency Concentration
What is WBTC, and why is its concentration significant?
Wrapped Bitcoin (WBTC) is a cryptocurrency designed to mirror the value of Bitcoin (BTC). Its concentration is significant because it reveals that a small number of entities, particularly decentralized finance (DeFi) protocols, collectively control a substantial portion of its circulating supply.
How many distinct wallet holders are there for WBTC?
As of October 22, 2023, there are 79,839 distinct wallet holders of WBTC.
What percentage of WBTC is held by the top 100 holders?
An overwhelming 73.76% of WBTC in circulation, equivalent to 120,230 WBTC, is held by the top 100 holders.
Which DeFi protocols are among the top holders of WBTC?
Aave and Compound are prominent DeFi protocols that hold significant shares of WBTC. Aave’s largest wallet, “0x9ff,” possesses 10.67% of the circulating WBTC, while Compound controls the second-largest share, “0xccF,” with 9.84% of WBTC.
How has the circulating supply of WBTC changed over time?
Since December 17, 2022, there has been a 12.31% reduction in WBTC’s circulating supply, declining from 185,909 WBTC to the current 163,006 WBTC.
What is the significance of WBTC in the cryptocurrency market?
WBTC holds the 16th position in terms of market capitalization among the top 20 cryptocurrencies, making it a notable asset in the crypto market.
What is the origin of the Wrapped Bitcoin project?
The Wrapped Bitcoin project was initiated through a collaboration between Bitgo, Kyber Network, and Ren (formerly Republic Protocol). It was introduced to the Ethereum blockchain in late January 2019 and allows for the minting and redemption of WBTC tokens through custodians while adhering to AML and KYC regulations.
More about Cryptocurrency Concentration
- Wrapped Bitcoin (WBTC)
- DeFi Protocols
- Cryptocurrency Market Capitalization
- Kyber Network
- Ren (formerly Republic Protocol)
- Ethereum Blockchain
- AML and KYC Regulations