WBTC supply on Ethereum dropped 35% since LUNA collapse

Wrapped Bitcoin (WBTC) proviso connected Ethereum (ETH) plunged by implicit 35% to 183,450 since Terra (LUNA) collapsed successful May 2022, according to Glassnode data.

WBTC’s marketplace headdress fell to arsenic debased arsenic $3.10 cardinal successful December 2022 from a highest of $13.03 cardinal successful April 2022, according to CryptoSlate data.

Source: Glassnode

The illustration supra shows that WBTC’s proviso peaked astatine 285,000 successful April 2022, erstwhile the flagship integer plus was trading astatine astir $48,000. During this period, request for the plus was comparatively precocious arsenic investors recovered a usage for it successful their Decentralized concern (DeFi) trades.

However, LUNA’s illness led to a contagion dispersed crossed respective crypto firms and resulted successful record-high liquidations among investors. At the time, whales similar Celsius Network were reportedly redeeming their WBTC holdings — sending 9,000 WBTC to FTX successful a imaginable OTC woody to conscionable its rising redemption requests.

The concern was further exacerbated erstwhile apical WBTC merchants — Alameda Research and FTX —faced a liquidity situation successful November 2022.

WBTC started to de-peg nether the presumption that its reserves were incomplete oregon held connected the collapsing crypto empire  — the disparity betwixt BTC and WBTC prices falling to 0.9774 connected Nov. 25, 2022.

Meanwhile, the spread has since closed with comparative calm returning to the market, but request for BTC connected the ETH blockchain has remained muted.

The asset’s bid publication shows 180,447.6213 WBTC against 180,455.0500 BTC successful custody arsenic of property time.

The station WBTC proviso connected Ethereum dropped 35% since LUNA collapse appeared archetypal connected CryptoSlate.