WBTC Supply Drops 15% in February: What It Means for Crypto

• Wrapped Bitcoin’s (WBTC) supply on the Ethereum blockchain shrank by 15% in February 2021, dropping to its lowest level since March 2021.
• 22,732 WBTC — worth $533 million — were burned in 2 days via FalconX. This burn was mainly caused by bankrupt crypto lender Celsius.
• WBTC is an ERC-20 token that mirrors Bitcoin’s price performance and is pegged 1:1 with BTC. Its current market cap stands at $3.63 billion.

WBTC Supply Declines 15%

In February 2021, the supply of Wrapped Bitcoin (WBTC) on Ethereum blockchain declined by 23,384 tokens – around 15%. This is the lowest level recorded since March 2021 according to Dune Analytics data. On the asset’s order book, there were ten transactions involving WBTC – 8 of which were burns and 2 of which were a cumulative mint of 798.72 WBTC by imToken.

Celsius Responsible for Major Burn

Bankrupt crypto lender Celsius was responsible for a large portion of the burns – they burnt 22,732 WBTC (worth $533 million) in 2 days via FalconX. This redemption echoes that seen in December 2022 when FTX collapsed and had an impact on reserves held in WBTC as it was a major merchant for the asset at the time.

What is WBT?

Wrapped Bitcoin (WBT) is an ERC-20 token based on Ethereum blockchain that tracks Bitcoin’s price performance and is pegged 1:1 with BTC cryptocurrency. It gained popularity during the bull run of 2022 when its supply peaked at 285,000 tokens as BTC traded around $48,000 per coin at that time. Currently its market cap stands at $3.63 billion according to CryptoSlate data – much lower than its peak of $13.03 billion back then..

Conclusion

The decline in WBT’s supply on Ethereum blockchain can be attributed to many factors including reduced demand due to market conditions as well as actively burning coins by lenders like Celsius who have been affected by their bankruptcy proceedings or other reasons such as tax avoidance measures or simply cleaning up their balance sheets before liquidation. Regardless of why these coins are being burned, it shows that there is still active trading taking place even though prices have not been reaching record highs like they did during last year’s bull run yet again this year so far..

Takeaways

• The supply of Wrapped Bitcoin on Ethereum dropped to its lowest level since March 2021 in February 2021; this decline amounted to a 15% reduction from previous levels; • Bankrupt crypto lender Celsius burnt 22,732 WBTC — worth $533 million — via FalconX; • WBTC is an Ethereum-based token peggd 1:1 with BTC whose current market cap stands at$3