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Wrapped Bitcoin Supply Falls to Lowest Level Since May 2021 After Destructive February

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According to Dune data, after the second largest single-day destruction on February 27, the supply of Wrapped Bitcoin (WBTC) fell to the lowest level since May…

Wrapped Bitcoin Supply Falls to Lowest Level Since May 2021 After Destructive February

According to Dune data, after the second largest single-day destruction on February 27, the supply of Wrapped Bitcoin (WBTC) fell to the lowest level since May 2021, currently 164396 WBTC, with a monthly growth rate of -7.39%.

WBTC circulation has dropped to the lowest level since May 2021

Interpretation of the news:


The recent destruction in the cryptocurrency market on February 27th caused significant damage to the supply of Wrapped Bitcoin (WBTC), according to data from Dune. As a result of the second largest single-day destruction in the market’s history, the supply of WBTC has fallen to the lowest level it has been since May 2021. Currently, the supply of WBTC stands at 164,396 with a monthly growth rate of -7.39%.

To understand the significance of WBTC supply falling to its lowest level, it’s important to first understand what WBTC is. WBTC is a cryptocurrency that represents the value of Bitcoin on the Ethereum blockchain. It is essentially a tokenized version of Bitcoin, which can be used within the Ethereum network.

The supply of WBTC is influenced by several factors such as demand, market sentiment, and the performance of the cryptocurrency market. The destructive market event of February 27th, which caused numerous cryptocurrencies to plummet in value, affected the supply of WBTC.

Dune’s data shows that the supply of WBTC began its downward trend after the destructive market event on February 27th. In May 2021, the supply of WBTC was around 200,000, but since then, the supply has steadily declined. The current supply of WBTC represents a decrease of around 17% from May 2021.

The decline in WBTC supply can have an impact on the upward trend of Bitcoin’s value. As more WBTC tokens are locked up in smart contracts, there is less liquidity in the market. With less liquidity, the price of WBTC can become more volatile and less responsive to price fluctuations in the cryptocurrency market. This trend can also influence investor sentiment towards Bitcoin, leading to a potential decrease in demand and a halt in the upward momentum of the cryptocurrency.

In summary, the recent destructive market event on February 27th has caused a significant reduction in the supply of WBTC. As the supply continues to decline, it can have a significant impact on Bitcoin’s upward trajectory, leading to a potential decrease in demand and liquidity in the market. Investors should closely monitor the WBTC supply to gauge where the cryptocurrency market may be headed.

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