1. PixelPlaygroundHome
  2. Web3 News

Significant Drop in WBTC Circulation Supply

• Web3 News • 166 views

On March 2, according to Dune Analytics data, more than 20000 WBTCs were destroyed at the contract address this week, and the circulation supply of WBTC has dr…

Significant Drop in WBTC Circulation Supply

On March 2, according to Dune Analytics data, more than 20000 WBTCs were destroyed at the contract address this week, and the circulation supply of WBTC has dropped to 153164, the lowest level since May 2021. According to the data on the chain, FalconX destroyed 11500 WBTC and 11200 WBTC respectively on February 27 and February 28.

More than 20000 WBTC were destroyed this week, and the circulation supply of WBTC reached a new low since May 2021

Interpretation of the news:


According to recent Dune Analytics data, the circulation supply of Wrapped Bitcoin or WBTC has dropped significantly, reaching its lowest point since May 2021. The report reveals that over 20,000 WBTCs, equivalent to approximately $1.2 billion, were destroyed at the contract address for the digital asset. A factor identified as responsible for the drop in the WBTC supply is the recent destruction of 11,500 WBTC and 11,200 WBTC by a blockchain-based financial firm, FalconX.

In light of the above data, several implications can be deduced. While the drop in the WBTC circulating supply might be seen as a worrisome indicator of the asset’s performance, there could be other interpretations. For instance, it could be argued that the destruction of such a considerable amount of WBTC is a sign of increased maturity in the cryptocurrency market. In other words, they may indicate that some investors or cryptocurrency holders have started to sell their holdings or convert them into other assets.

Another possible interpretation of this sharp decline in the WBTC circulating supply is that more investors are moving to long-term or medium-term holdings of cryptocurrencies, as opposed to short-term trades or speculative investments. With the increasing trend of institutional investors investing in cryptocurrencies such as BTC or ETH, this could further consolidate the positive outlook for the emergence of a more stable and mature cryptocurrency market.

In conclusion, it is hard to determine whether the recent drop in the WBTC circulating supply is entirely positive or negative for the cryptocurrency market. Still, it is evident that the developments within the WBTC ecosystem provide valuable insights into the maturation and stabilization process of the broader cryptocurrency space.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/4513/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/02/2023 08:33
Next 03/02/2023 08:47

Recommended articles