Three months ago, there were 441,546 wrapped or synthetic bitcoins on the Ethereum and Binance Smart Chain worth $17.45 billion using exchange rates on April 24, 2022. Since then, that number has dropped by 53,582 synthetic bitcoins and today the number of wrapped or bonded bitcoins is approximately 387,964 worth $8.81 billion in value.

Number of Wrapped or Synthetic Bitcoins Held on Ethereum Declines

In the last few years the use of wrapped, bonded or synthetic bitcoins has increased a great deal 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 great majority of these types of tokens stem from the Wrapped Bitcoin (WBTC) project as the ERC20’s market cap is the 18th largest among 13,373 crypto assets. At press time, WBTC has a circulating supply of around 236,882 wrapped bitcoins with a valuation of around $5.38 billion today.

However, WBTC’s circulating supply has decreased a great deal over the last three months as there was 280,505 WBTC in existence on April 23, 2022, according to Dune Analytics’ statistics. At the time, BTC was trading for $39K per unit and the WBTC market cap was valued at $10.93 billion.

WBTC is issued on Ethereum and at the time, the BSC BEP2 token otherwise known as BTCB had a circulating supply of around 105,172, and today the supply hasn’t changed much as there’s 105,175 BTCB in circulation. Three months ago the stash of BTCB was worth $4.10 billion and today it’s worth $2.39 billion.

While 53,582 synthetic bitcoins have been erased from aggregate of Ethereum-based tokens and most of the reduction stemmed from WBTC. Although, Dune Analytics’ metrics indicate that HBTC, and RENBTC saw declines during the last 90 days.

HBTC saw a high of 39,870 on May 15, 2022, and today, the number of HBTC in circulation is 38,970. Currently, the aggregate number of synthetic or wrapped 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 equates to 1.344%, which means the current supply of BTCB in existence represents 0.503% of BTC’s capped supply.

What do you think about the number of wrapped or synthetic bitcoins declining during the last three months? Let us know what you think about this subject in the comments section below.

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