- July saw a 2.8% increase in WBTC supply, marking the highest positive change within a year.
- The correlation between WBTC supply and DeFi’s Total Value Locked (TVL) stands at a significant 0.94.
- Despite minor price changes, WBTC’s robust trade indicates growing confidence in DeFi.
In July 2023, a significant event unfolded in the world of Decentralized Finance (DeFi) as the supply of Wrapped Bitcoin (WBTC) experienced a remarkable increase of 2.8%, marking the highest positive change within a year.
Notably, renowned cryptocurrency analyst Tom Wan sent out an insightful tweet about the growing interest in DeFi:
The supply of $WBTC is a nice indication of DeFi Appetite. The correlation between WBTC Supply vs DeFi TVL is at 0.94
— Tom Wan (@tomwanhh) July 27, 2023
In July, we are seeing a 4,488 (2.8%) increase in supply. Tho it is not a lot, it is already the highest positive supply change in a year pic.twitter.com/bdgbKhKMFw
WBTC, a token representing Bitcoin on the Ethereum blockchain, allows users to participate in Ethereum’s extensive DeFi ecosystem while still holding onto their Bitcoin. Observers often regard the supply of WBTC as an indication of DeFi’s overall health and popularity. The correlation between WBTC supply and DeFi’s Total Value Locked (TVL) stands at a remarkable 0.94, according to Wan.
The price of WBTC is currently at $29,505.87, representing a 24-hour price change of 1.05%. The token has a circulating supply of 161,564 WBTC coins, contributing to its market cap of $4,767,100,191. With a 24-hour trading volume of $112,354,224, WBTC demonstrates an active and liquid market, further solidifying its position as a popular token within the cryptocurrency space.
Moreover, the Compound community proposed to increase the supply cap for WBTC, among other tokens, on the Ethereum Compound v3 USDC. This proposal, pending voting, could further accelerate the growth of the WBTC supply.
The recent increase in WBTC supply is a positive sign for the DeFi market, indicating increased investor appetite and confidence. As these developments are being closely monitored, it is evident that the world of DeFi, with WBTC at its helm, is poised for exciting times ahead. The growing supply of WBTC suggests a rising interest in decentralized finance, and it may signal the entry of more participants into the DeFi ecosystem.
