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Three months ago, there were 441,546 wrapped or synthetic bitcoins on Ethereum and Binance Smart Chain worth $17.45 billion using exchange rates on April 24, 2022. Since then, this number has decreased by 53,582 synthetic bitcoins and today the number of wrapped or pegged bitcoins are approximately 387,964 worth $8.81 billion in value.
In recent years, the use of wrapped, tied or synthetic bitcoins has increased greatly, and earlier this year there were close to half a million synthetic bitcoins held on the Binance Smart Chain (BSC) and Ethereum (ETH) blockchains.
A large majority of these types of tokens originate from the Wrapped Bitcoin (WBTC) project, as the ERC20’s market capitalization is the 18th largest among 13,373 cryptoassets. At press time, WBTC has a circulating supply of about 236,882 wrapped bitcoins with a value of about $5.38 billion today.
However, WBTC’s circulating supply has dropped a lot in the past three months as there were 280,505 WBTC in existence on April 23, 2022, according to Dune Analytics’ statistics. At the time, BTC was trading at $39,000 per unit, and WBTC’s market cap was valued at $10.93 billion.
WBTC is issued on Ethereum and at that time the BSC BEP2 token otherwise known as BTCB had a circulating supply of around 105,172 and today the supply has not changed much as there is 105,175 BTCB in circulation. Three months ago, the stock of BTCB was worth $4.10 billion, and today it is worth $2.39 billion.
While 53,582 synthetic bitcoins have been deleted from Ethereum-based tokens, most of the reduction came from WBTC. Although Dune Analytics’ calculations indicate that HBTC and RENBTC have seen declines over the past 90 days.
HBTC saw a peak of 39,870 38,970 on May 15, 2022, and today the number of HBTC in circulation is 38,970. Currently, the total number of synthetic or packaged bitcoins on both BSC and ETH represents around 1.847% of BTC’s 21 million supply cap. The number of synthetic or wrapped bitcoins on Ethereum alone equals 1.344%, meaning that the current supply of BTCB in existence represents 0.503% of BTC’s finite supply.
What do you think about the number of wrapped or synthetic bitcoins decreasing in the last three months? Let us know what you think about this topic in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Coinmarketcap.com, Dune Analytics,
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