-The wrapped Bitcoin (WBTC) supply on Ethereum has dropped by around 35% since the LUNA/UST collapse last year, with approximately 101,550 BTC having exited the supply since its all-time high.
-WBTC is a tokenized version of Bitcoin on the Ethereum blockchain that is backed 1:1 with actual BTC, and thus always trades at the same price as the crypto.
-Investors may also choose WBTC over BTC when fast transactions are required, as the Bitcoin network is generally slower than the Ethereum blockchain in processing transactions.
The crypto market has seen major changes in the past year, with one of the most significant being the LUNA/UST collapse back in May of last year. This event had a major impact on the market, particularly on the Ethereum blockchain. According to data from the on-chain analytics firm Glassnode, the wrapped Bitcoin (WBTC) supply on Ethereum has dropped by around 35% since the LUNA/UST collapse. Specifically, approximately 101,550 BTC has exited the supply since its all-time high.
WBTC is a tokenized version of Bitcoin on the Ethereum blockchain that is backed 1:1 with actual BTC, and thus always trades at the same price as the crypto. This means that investors can gain exposure to BTC while leveraging the Ethereum blockchain. Additionally, investors may also choose WBTC over BTC when fast transactions are required, as the Bitcoin network is generally slower than the Ethereum blockchain in processing transactions.
The value of the WBTC supply metric seems to have dropped significantly since the LUNA/UST collapse. The metric had seen a steady growth rate of WBTC tokens throughout 2020 and 2021, but this growth rate slowed down in the first half of 2022 and peaked at 285,000 BTC. Since then, the WBTC supply has been on a downward trajectory, dropping by around 35% since the collapse.
It remains to be seen whether the WBTC supply will continue to decline, or if there will be a resurgence of interest in the tokenized version of Bitcoin. For now, it seems likely that the WBTC supply metric will remain relatively low for the foreseeable future. However, it is important to keep an eye on the market and see how it responds to the changes in the crypto market over the coming months.