Tokenized Bitcoin Supply Has Declined Significantly Year-to-Date – Blockchain Bitcoin News

This year, the number of tokenized bitcoins hosted on alternative blockchains like Ethereum has plummeted. Last January, the number of Wrapped Bitcoin (WBTC) issued on the Ethereum blockchain was around 266,880 WBTC and since then the number has fallen by more than 15% to 225,962 WBTC. Similarly, the amount of tokenized bitcoins minted on the Binance Smart Chain (BSC) has also declined sharply over the past 11 months.

Tokenized bitcoin supplies have dwindled significantly over the past 11 months

At the time of writing, the two largest tokenized Bitcoin (BTC) projects are Wrapped Bitcoin (WBTC) and BSC-issued Bitcoin BEP2, also known as BTCB. However, the number of tokenized bitcoins coming from both projects has declined sharply since January.

For example, on January 6, 2022, the number of BTCB in circulation was around 105,121 BTCB according to archived statistics from coinmarketcap.com. Additionally, BTC was trading for $42,738 per unit on the day, meaning BTCB’s market cap was around $4.49 billion.

Change in BTCB offer since January 6, 2022.

Since then, the price of BTC has faltered and is far from the $42,000 zone. The number of BTCB in circulation fell by 49.1% to 53,444 BTCB, according to coinmarketcap.com data recorded on Nov. 25.

At an exchange rate of approximately $16,504 on November 25, BTCB’s market cap is approximately $882 million. In the last 24 hours, BTCB saw $3.25 million in global trading volume across a range of decentralized exchange (Dex) platforms. Some of the dex applications with the most active BTCB trading include Pancakeswap V2, Biswap, Dodo and Apeswap.

Packaged bitcoin supply is down 8.72% in 30 days

The largest tokenized Bitcoin project WBTC has many more tokens in circulation than BTCB. On November 25, 2022, the data shows that the number of WBTC in circulation is about 225,962 WBTC and on January 14, 2022 it is 266,880 WBTC.

This means that over the course of 2022, WBTC supply was reduced by more than 15% as 40,918 tokens were retired. Additionally, Dune Analytics data released by 21shares Research shows that WBTC’s supply is down 8.72% over the last 30 days.

The daily mintings and burnings of the WBTC.

Of course, WBTC’s value on Jan. 14 was much higher as WBTC’s market valuation was around $11.35 billion. With over 40,000 WBTC removed from supply and paired with BTC’s price falling to $16,000, WBTC’s total market cap on Nov. 25 is much lower than it was at the start of the year.

Today, WBTC’s market valuation is around $3.66 billion in nominal terms and it has seen a trading volume of $346.90 million in the last 24 hours. Some of the most active exchanges trading WBTC include Binance, Okx, Digifinex, and Hitbtc.

Tokenized bitcoin shipments this year have followed the same path as stablecoin shipments, which have shrunk sharply in 2022. Data suggests that traders are exchanging their tokenized stablecoins for real US dollars during the crypto winter. With tokenized bitcoin projects like BTCB and WBTC, users who exchange these tokens are trying to get their real bitcoins back.

tags in this story

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What are your thoughts on the reduction in tokenized bitcoin supplies over the past 11 months? Let us know what you think about this topic in the comment section below.

Jamie Redman

Jamie Redman is the news director at Bitcoin.com News and a Florida-based financial technology journalist. 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 today’s emerging disruptive protocols.

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