Fun

Wrapped Bitcoin Project Sees 18% Redemption of Circulating Supply in 54 Days

News Feed - 2023-01-21 07:01:59

Wrapped Bitcoin Project Sees 18% Redemption of Circulating Supply in 54 Days


Statistics show over the course of 54 days, the number of wrapped bitcoin (WBTC) hosted on the Ethereum network has decreased by 40,156. This equates to a more than 18% redemption of the circulating supply of WBTC since Nov. 27, 2022. WBTC Remains Largest Operation in Terms of Bitcoin Custody Despite Recent Redemptions


The Bitgo-backed Wrapped Bitcoin (WBTC) project has been officially in operation 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 the number of bitcoin (BTC) custodied to back the WBTC token value.


On January 20, 2023, WBTC is the 19th largest crypto asset by market capitalization, valued at $21,278 per unit. WBTC’s market valuation on Friday afternoon Eastern Time was around $3.8 billion. According to the project’s website and transparency dashboard, at 3:00 p.m. Eastern Time on Jan. 20, 2023, there were approximately 180,197 WBTC in circulation on the Ethereum chain. Wrapped Bitcoin’s transparency dashboard on Friday at 3:00 p.m. Eastern Time on Jan. 20, 2023.


The project also manages 99.89 WBTC which is hosted on the Tron blockchain network. The stash of ERC20-based WBTC tokens is substantially less than it was 54 days ago on Nov. 27, 2022, when 220,353 WBTC ($16.4K per BTC) was circulating on the Ethereum blockchain network. Ten months prior, on Feb. 26, 2022, the number of WBTC in circulation was approximately 262,662 ($39.4K per BTC).


That means over the last ten months, 31.39% of the WBTC in circulation was removed from the overall supply. More than half of that percentage, or 18.22%, of the WBTC supply was redeemed over the last 54 days, or 40,156 WBTC total, since Nov. 27, 2022.


While WBTC is the largest wrapped 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, does operate differently than Bitgo’s management of simply holding the BTC for the given amount issued.


While there’s 180,197 WBTC in circulation today, there’s approximately 180,205 BTC backing the WBTC supply in Bitgo’s custody, according to the website’s dashboard. The supplies of wrapped or synthetic BTC tokens have followed the same trend as stablecoins, as the stablecoin economy has seen billions in redemptions over the last year. Tags in this story Asset-backed, asset-backed BTC token, Bitcoin, Bitgo-backed, circulating supply, collateralized, collateralized BTC, Crypto asset, Crypto-collateralized, custody, derivative, Eastern Time, ERC20-based, Ethereum, Ethereum chain, Jan. 2019, Largest operation, Market Capitalization, redemption, STETH, Synthetic Bitcoin, Synthetic BTC, Token value, tokenization, tokenized, Transparency dashboard, Tron blockchain network, WBTC, Wrapped, wrapped bitcoin, Wrapped Bitcoin Token, Wrapped BTC, Wrapped BTC Token, Wrapper


What do you think about the WBTC project seeing an 18% redemption of the circulating supply over the last 54 days? Share your thoughts about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Ethereum Gas Fees Spike as ETH Value Rises: Average Onchain Fees Jump by More Than 50% ALTCOINS | 2 days ago BONK Meme Coin Sees Wild Price Fluctuations and Massive Holder Concentration ALTCOINS | Jan 6, 2023


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFormer FTX President Launches New Crypto Venture, Raises $5 Million From Leading Investors Next articleIMF Division Chief and Deputy Managing Director Call for Swift Regulatory Action to Avoid Crypto Contagion to Legacy Finance Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits


As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing

News Feed

India to Discuss Crypto During G20 Presidency to Establish Tech-Driven Regulatory Framework, Says Finance Minister
India to Discuss Crypto During G20 Presidency to Establish Tech-Driven Regulatory Framework, Says Finance Minister India plans to discuss crypto regulations during its G20 presiden
Watch Out For These Levels If Bitcoin Price Returns To $100K: Blockchain Firm
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin Jumps to 3-Week High Near $8,600 as Fed Plans New Round of Reserve Increases
View The Fed’s decision to expand its balance sheet is seen as a long-term positive development for bitcoin by crypto market experts. Speculation that SEC might approve ETF application by Bitwise is fueling optimi
Crypto Market Turning Point — Most Cryptocurrencies Down 57% to Over 80% From Price Highs
Crypto Market Turning Point — Most Cryptocurrencies Down 57% to Over 80% From Price Highs Roughly six months ago, bitcoin and a number of digital assets reached all-time highs an
Amaka Nwaokocha14 minutes agoArkham IDs Robinhood as 5th-largest ETH holderArkham Intelligence said the wallet contains approximately $2.54 billion worth of ETH under custody for user balances.68 Total viewsListen to art
Derek Andersen5 hours agoSouth Korean Shinhan Bank completes stablecoin remittance pilot with Asian partnersThe bank used the Hedera network to settle payments in South Korean, Thai and Taiwanese currencies in real-time
Matrixport Joins Growing List of Crypto and Blockchain Companies Letting Employees Go
Matrixport Joins Growing List of Crypto and Blockchain Companies Letting Employees Go The crypto firm Matrixport, led by former Bitmain CEO Jihan Wu, is laying off 10% of the compa
Marathon Digital revenue surges 452% in Q4 amid ‘banner year’
Martin Young2 hours agoMarathon Digital revenue surges 452% in Q4 amid ‘banner year’Company stock dipped slightly despite the bumper earnings report, though MARA has gained 300% over the past 12 months.1206 Total vie
Nigerian Judge Rules in Favor of Accused Crypto Startup, Accounts to Be Reopened
Nigerian Judge Rules in Favor of Accused Crypto Startup, Accounts to Be Reopened A Nigerian Federal Court judge recently ruled that the two frozen bank accounts belonging to Rise V
IMF Says Only 23% of Central Banks Can Legally Issue Digital Currencies
IMF Says Only 23% of Central Banks Can Legally Issue Digital Currencies Researchers at the International Monetary Fund (IMF) have examined the central bank laws
Judge nods Robinhood’s $9M ‘refer-a-friend’ lawsuit settlement
Martin Young6 hours agoJudge nods Robinhood’s $9M ‘refer-a-friend’ lawsuit settlementRobinhood has settled a long-running class-action lawsuit in Washington that involved unsolicited text spamming via its ‘refer-
HSBC, SGX to Investigate if DLT Offers Efficiency Boost for Bond Markets
Can digitalizing bonds with distributed ledger technology (DLT) bring benefits to market participants? That’s a question being asked by HSBC Singapore in a new trial being de