In May 2026, the number of active addresses on the Wrapped Bitcoin (WBTC) network decreased significantly to 2,134. This data was calculated based on the seven-day moving average in the on-chain analysis by CryptoQuant. As a result, the lowest level of activity has been observed on the WBTC network since January 1.
Stagnation Continues in DeFi
WBTC is one of the bridge tokens that enables Bitcoin to enter the Ethereum ecosystem and is frequently used in decentralized finance (DeFi) applications. Users typically transfer WBTC to lend, provide liquidity, or use it for collateral purposes. However, the low number of active addresses seen in May indicates that transactions and transfers on the DeFi side have slowed down significantly.
The analysis found no major incident, security vulnerability, or unexpected development that led to this regression. While market participants generally remained in a wait-and-see position, silence prevailed in WBTC transactions.
Mini dictionary: Wrapped Bitcoin (WBTC) is an Ethereum-backed version of Bitcoin. It is a token created in the ERC-20 standard to use Bitcoin on DeFi platforms. In return for this process, real Bitcoin is stored and represented via WBTC.
According to CryptoQuant’s analysis, “Investors are no longer actively transferring WBTC to generate returns, provide liquidity, or use it as collateral. Activity in DeFi appears to have fallen to an annual base.”
Sharp Return from February Peak
WBTC addresses, which remained stable at the beginning of the year, experienced a short-term revival in the first week of February. Between February 3-5, active addresses increased to the limit of 5,400. However, this period was not permanent and transaction volumes dropped rapidly within a few weeks. In March, the numbers were around 2,800-3,000, but this range was reduced in April.
Analysts state that the decline that followed the rapid increase in February does not signal a permanent recovery in the market. “Although the mobility seen seemed to be the beginning of a rising momentum, there was no real turnaround and the activity fell to base levels in a short time,” it was commented.
Simultaneous Liquidity Release on CEX and DeFi
There are remarkable developments not only on the DeFi side but also in the central exchange market. According to the data shared by CryptoQuant, BTC spot sales pressure increased on the Binance exchange and there was a significant amount of Bitcoin transfers. During the same period, stablecoin net flows also remained negative.
30-day moving average data on Binance showed that there were serious BTC inflows in February and March, and although the price tried to recover, an intense sales wave was encountered. Similarly, as stablecoin balances decreased, buying power on centralized exchanges weakened significantly.
| Indicator | February 2026 | May 2026 |
|---|---|---|
| WBTC Active Address (7G HO) | Approximately 5,400 | 2,134 |
| Binance BTC Net Flow | Low | High entry (selling pressure) |
| Stablecoin Net Flow | Low | Negative (decrease) |
In the analysis, it was stated that liquidity from both decentralized and centralized environments has left the system and the fresh money flow that will initiate a new wave of purchases in the market has not yet been seen. The report highlights two key criteria for the rise: a resurgence in WBTC active addresses or the entry of large-scale new stablecoin issuances onto exchanges. It is stated that as of May 21, both of these conditions have not been met.
The overall picture reveals that risk appetite is on the decline in both centralized and decentralized applications in the crypto market. Investors are on hold and a new catalyst is needed to create meaningful momentum in the market.
