This year, the number of tokenized bitcoins hosted on alternative blockchains like Ethereum has dropped significantly. Last January, the number of wrapped bitcoins (WBTC) issued on the Ethereum blockchain was around 266,880 WBTC and since then the number has dropped by more than 15% to 225,962 WBTC. Similarly, the amount of tokenized bitcoins minted on the Binance Smart Chain (BSC) has also dropped significantly over the past 11 months.
Tokenized bitcoin supplies have drastically decreased over the past 11 months
As of this writing, the two largest tokenized bitcoins (BTC) the projects are wrapped bitcoin (WBTC) and the Bitcoin BEP2 issued by BSC otherwise known as BTCB. However, the number of tokenized bitcoins from both projects has dropped significantly since January.
For example, the number of BTCBs in circulation on January 6, 2022 was approximately 105,121 BTCBs, according to archive statistics from coinmarketcap.com. Otherwise, BTC was trading at $42,738 per share that day, meaning BTCB’s market capitalization was approximately $4.49 billion.
Since, BTCThe price of has simmered and it is far from the $42,000 area. The number of BTCBs in circulation fell by 49.1% to 53,444 BTCBs, according to coinmarketcap.com data recorded on Nov. 25.
At an exchange rate of approximately $16,504 on November 25, BTCB’s market capitalization is approximately $882 million. In the past 24 hours, BTCB has recorded a global trading volume of $3.25 million across a host of decentralized exchanges (dex). The dex apps with the most active BTCB trading include Pancakeswap V2, Biswap, Dodo, and Apeswap.
Wrapped Bitcoin Supply Drops 8.72% in 30 Days
The largest tokenized bitcoin project WBTC has many more tokens in circulation than BTCB. On November 25, 2022, data shows that the number of WBTCs in circulation is around 225,962 WBTCs and on January 14, 2022, it was 266,880 WBTCs.
This means that over the course of 2022, WBTC’s supply has been reduced by more than 15%, with 40,918 tokens removed from circulation. Additionally, over the past 30 days, data from Dune Analytics, published by 21shares Research, shows that the supply of WBTC has fallen by 8.72%.
Of course, the value of WBTC was much higher on January 14, as the market valuation of WBTC was around $11.35 billion. Withdraw over 40,000 WBTC from supply and pair it with BTCThe price of collapsing to $16,000, makes WBTC’s overall market capitalization on Nov. 25 much less than it was at the start of the year.
Today, the market valuation of WBTC is approximately US$3.66 billion nominal and in the past 24 hours it has recorded a trading volume of US$346.90 million. The most active exchanges on WBTC include Binance, Okx, Digifinex, and Hitbtc.
Tokenized bitcoin supplies have followed the same path as stablecoin supplies this year, which have dwindled a lot in 2022. Data suggests that during the crypto winter, traders are exchanging their tokenized stablecoins for real US dollars. With tokenized bitcoin projects like BTCB and WBTC, users trading these tokens are looking to get their real bitcoin back.
What do you think of the shrinking supply of tokenized bitcoins over the past 11 months? Let us know what you think about this topic in the comments section below.
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