A Decline in Circulating WBTC Supply
The circulating supply of Wrapped Bitcoin (WBTC) has seen a significant decline over the past year. Here are the key points:
- WBTC is currently the 16th most valuable cryptocurrency with a market value of $4.73 billion.
- The circulating supply of WBTC has decreased by over 86,000 coins, or 34%, since July 2022.
- Despite the decrease in circulating supply, WBTC’s market valuation has grown from $3 billion to $4.73 billion.
- The increase in value is primarily due to the rise in Bitcoin’s price, which has surged by over 65% since the beginning of 2023.
- WBTC’s market capitalization follows the price of Bitcoin, despite the decrease in circulating supply.
WBTC Distribution on Ethereum and Other Blockchains
Within the Ethereum network, WBTC is held by 74,191 holders. However, a majority of the supply, 51.5%, is controlled by the top ten addresses. Here are the key points:
- WBTC tokens are used in decentralized finance platforms like Aave, Compound, and Arbitrum.
- The top 100 Ethereum addresses hold 75.16% of the total WBTC supply.
- WBTC is also utilized on other blockchains including Arbitrum, Cronos, Fantom, Polygon, Solana, and Avalanche.
Hot Take
The decline in circulating WBTC supply raises questions about the long-term sustainability of the project. While the increase in market valuation is impressive, the concentration of supply in a few addresses may pose risks to the overall ecosystem. It remains to be seen how WBTC will evolve in the future and whether it can maintain its position as a leading wrapped bitcoin derivative token.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.