Decentralized Finance Titans Control Over Half of WBTC Circulation
Wrapped bitcoin (WBTC) has seen a significant shift in its circulation over the last ten months. Since mid-December 2022, the cryptocurrency world has witnessed the reduction of almost 23,000 WBTC coins. Today, WBTC boasts a diverse community of 79,839 wallet holders. What's striking is that an overwhelming 73.76% of these digital tokens are concentrated among the top 100 holders.
Aave and Compound Secure Top Spots Among WBTC Holders
As of October 22, 2023, a total of 79,839 individual wallets securely hold WBTC, a crypto token that is pegged with bitcoin (BTC) on a 1:1 basis. The circulating supply of WBTC now stands at 163,006 tokens, valued at USD 4.88 billion. This marks a significant 12.31% reduction from the 185,909 WBTC in circulation on December 17, 2022.
The inception of the Wrapped Bitcoin project was the result of a collaborative effort between Bitgo, Kyber Network, and Ren, formerly known as Republic Protocol. It stepped onto the Ethereum blockchain in late January 2019. The minting and redemption are facilitated through custodians, and participants are required to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
WBTC currently holds the 16th position among the top 20 cryptocurrencies in terms of market capitalization. A close look at the data reveals that the dominant addresses are under the control of prominent decentralized finance (DeFi) players, including Aave, Compound, Arbitrum’s Gateway, Polygon’s Bridge, and MakerDAO. The largest wallet, known as "0x9ff," is none other than "Aave: aWBTC Token V2," and it claims a considerable 10.67% of the circulating WBTC.
The address "0xccF" follows closely as the second-largest holder, with the title "Compound: cWBTC2 Token" holding 9.84% of the circulating WBTC. The compound further extends its reach to the third-largest "0xc3d" wallet, with a notable 7.96% of the WBTC supply. Intriguingly, every wallet within the top ten WBTC accounts belongs to a DeFi protocol, jointly overseeing a whopping 52% of the circulating wrapped bitcoin.
Elite 20 WBTC Addresses Control 59.18% of Supply
The elite 20 WBTC addresses control a remarkable 59.18% of the total supply, while the top 50 collectively account for 68.09%. Astonishingly, approximately 73.76% of the circulating WBTC, amounting to 120,230 WBTC tokens, are securely held by the top 100 holders. It's important to note that WBTC, apart from being a trailblazer in the wrapped crypto domain, still retains its status as the largest wrapped project when it comes to BTC reserves.
However, within the Ethereum ecosystem, a notable prevalence of wrapped or synthetic ether is on a larger scale compared to the tokenized Bitcoin count today.
What is your take on the concentration of WBTC’s circulating supply and the 10 defi protocols that hold 52%? Please share your thoughts and opinions about this subject in the comments section below.
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