{"id":557570,"date":"2023-02-28T14:24:25","date_gmt":"2023-02-28T11:24:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wrapped-bitcoin-supply-drops-to-negative-after-11500-wbtc-burn-linked-to-celsius\/"},"modified":"2023-02-28T14:24:25","modified_gmt":"2023-02-28T11:24:25","slug":"wrapped-bitcoin-supply-drops-to-negative-after-11500-wbtc-burn-linked-to-celsius","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wrapped-bitcoin-supply-drops-to-negative-after-11500-wbtc-burn-linked-to-celsius\/","title":{"rendered":"# Wrapped Bitcoin supply drops to negative after 11,500 wBTC burn linked to Celsius"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e777c132a3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e777c132a3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/wrapped-bitcoin-supply-drops-to-negative-after-11500-wbtc-burn-linked-to-celsius\/#%E2%80%9D_Wrapped_Bitcoin_supply_drops_to_negative_after_11500_wBTC_burn_linked_to_Celsius_%E2%80%9C\" >&#8221; Wrapped Bitcoin supply drops to negative after 11,500 wBTC burn linked to Celsius  &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Wrapped_Bitcoin_supply_drops_to_negative_after_11500_wBTC_burn_linked_to_Celsius_%E2%80%9C\"><\/span>&#8221; Wrapped Bitcoin supply drops to negative after 11,500 wBTC burn linked to Celsius  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-48054ca8>The supply of wr<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ed Bitcoin (wBTC) dropped to its lowest since May 2021 after the second-largest single-day burn on Feb. 27.\u00a0<\/p>\n<p>A total of 11,500 WBTC worth about $260 million linked to now-bankrupt crypto lender Celsius was burned, turning its growth rate to negative. The current total supply of the wrapped token is 164,396 WBTC, with a monthly growth rate of -7.39.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/66ac9bc0-a2c3-42a1-9911-38740e29de90.png\"><figcaption style=\"text-align: center;\"><em>wBTC Daily mint and burn. Source: Dune<\/em><\/figcaption><\/figure>\n<p>WBTC is an Ethereum-based ERC-20 token that mirrors the value of Bitcoin and is pegged 1:1 with the Bitcoin (BTC) price. Bitgo co-developed wBTC in 2019 alongside blockchain interoperability protocol Ren and multi-chain liquidity platform Kyber. wBTC is also managed by the decentralized autonomous organization wBTC DAO, which comprises over 30 members. <\/p>\n<p>When a merchant wants to exchange BTC for wBTC, they start a burn transaction and alert the custodians. The custodians then send the matching amount of BTC to the merchant&#8217;s bitcoin address. Users can then exchange their wBTC for BTC at merchants, who burn the received tokens.<\/p>\n<p>Being an ERC-20 token makes the transfer of wBTC faster than normal Bitcoin, but the key advantage of wBTC is its integration into the world of Ethereum wallets, decentralized apps and smart contracts.<\/p>\n<p>During the peak of the bull run, wrapped tokens became a popular tool of use in the DeFi ecosystem. wBTC&#8217;s supply peaked at 285,000 in April 2022 when the BTC price was trading above $48,000.<\/p>\n<p>However, with the advent of the bear market and numerous crypto contagions, the demand started to fade away. The first signs of lowering demand came after the Terra-LUNA-led crypto contagion that forced several crypto lenders to redeem their wBTC. According to one report, Celsius Network redeemed about 9,000 wBTC amid a growing withdrawal demand. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Celsius Network coin report shows a balance gap of $2.85 billion<\/em><\/strong><\/p>\n<p>A similar scenario occurred in November 2022 after the FTX collapse, where reports indicate the now-bankrupt crypto exchange tried redeeming 3,000 wBTC right before filing for bankruptcy. After the FTX&#8217;s collapse in November, wBTC experienced its largest monthly coin redemption, with over 28,000 wBTC redeemed back to the original coin.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Interesting nugget from today&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24WBTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$WBTC<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> Space w\/ <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BitGo?ref_src=twsrc%5Etfw\">@BitGo<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/KyberNetwork?ref_src=twsrc%5Etfw\">@KyberNetwork<\/a>:<\/p>\n<p>During FTX turmoil, someone from Alameda tried to redeem 3k WBTC for BTC.<\/p>\n<p>BitGo refused to honor.<\/p>\n<p>Tokens were burned anyway.<\/p>\n<p>BitGo isn&#8217;t sure what to do w\/ the 3k BTC.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/A1wYY72skb\">https:\/\/t.co\/A1wYY72skb<\/a><\/p>\n<p>\u2014 Chris Blec (@ChrisBlec) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ChrisBlec\/status\/1603115222088445953?ref_src=twsrc%5Etfw\">December 14, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The market contagion caused by the FTX collapse also depegged wBTC from the original value of BTC. Although the slippage was just about 1.5%, it raised serious concerns at the time about whether such synthetic tokens is a viable mode of value transfer. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/wrapped-bitcoin-supply-drops-to-negative-after-11-500-wbtc-burn-linked-to-celsius\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Wrapped Bitcoin supply drops to negative after 11,500 wBTC burn linked to Celsius &#8220; The supply of wrapped Bitcoin (wBTC) dropped to its lowest since May 2021 after the second-largest single-day burn on Feb. 27.\u00a0 A total of 11,500 WBTC worth about $260 million linked to now-bankrupt crypto lender Celsius was burned, turning its&#8230;<\/p>\n","protected":false},"author":1,"featured_media":557571,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/abaab985-96bb-43f6-a9c7-f0e8857f4afc.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,110593,74894,136596,76699,135234],"class_list":["post-557570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-trader","tag-blockchain","tag-celsius","tag-erc-20","tag-ftx"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/557570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=557570"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/557570\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/557571"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=557570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=557570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=557570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}