Statistics show that over a period of 54 days, the number of returned bitcoins (WBTC) hosted on the Ethereum network decreased by 40,156. This represents a redemption of more than 18% of the circulating supply of WBTC as of November 27, 2022.
WBTC Remains Largest Operation in Bitcoin Held Terms Despite Recent Redemptions
The Bitgo-support Bitcoin Wrapped (WBTC) The project has been officially operational since the end of January 2019 and has grown significantly since its launch. At the time of writing, it is the largest operation in terms of number of bitcoins (BTC) is in custody to support the value of WBTC vouchers.
As of January 20, 2023, WBTC is the 19th largest crypto asset by market capitalization, valued at $21,278 per unit. WBTC’s market valuation as of Friday afternoon Eastern was approximately $3.8 billion. According to the project’s website and transparency panelat 3:00 Eastern Time on January 20, 2023, there were approximately 180,197 WBTC in circulation on the Ethereum chain.
The project also manages 99.89 WBTC which is hosted on the Tron blockchain network. The stash of ERC20-based WBTC tokens is much smaller than it was 54 days ago on November 27, 2022, when 220,353 WBTC ($16.4K per BTC) distributed on the Ethereum blockchain network. Ten months earlier, on February 26, 2022, the number of WBTC in circulation was approximately 262,662 ($39.4K per BTC).
That means that in the last ten months, 31.39% of the WBTC in circulation has been removed from the total supply. More than half of that percentage, or 18.22%, of the WBTC supply has been redeemed in the past 54 days, or a total of 40,156 WBTC, since November 27, 2022.
While WBTC is the largest return version of bitcoin, Lido’s staking token STETH, a derivative of Ethereum, is the largest synthetic version of a top crypto asset in terms of market capitalization. STETH, however, operates in a different way than Bitgo management to the BTC for the given amount issued.
While there are 180,197 WBTC in circulation today, there are approximately 180,205 BTC support the supply of WBTC under the custody of Bitgo, according to the website’s dashboard. The folded or synthetic supplies BTC tokens have followed the same trend as stablecoins, as the stablecoin economy has seen billions in redemptions over the past year.
What do you think about the WBTC project which has seen an 18% redemption of the supply in circulation in the last 54 days? Share your thoughts on this topic in the comments section below.
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