According to data from Dune Analytics on July 24, the amount of Wrapped Bitcoin (wBTC), a synthetic form of Bitcoin, circulating on Ethereum has fallen by 44% since May 2022. In July 2023, wBTC circulating on Ethereum stood at approximately 158,000 BTC, a sharp decline from 282,000 BTC recorded in May 2022.

Interestingly, on-chain records also showed that the amount of wBTC minted and circulated in Ethereum, primarily for decentralized finance (DeFi) purposes, continued to rise in the first five months of 2022. It peaked in May 2022 amid a market-wide contraction of crypto prices that saw Bitcoin cool off from 2021 peaks of over $69,000.

BTC On Ethereum Falls

Bitcoin holders often tokenize their coins, converting them into ERC-20 tokens in Ethereum to participate in various …