Questions tagged [follow]

Ilaria Tue May 14 2024 | 7 answers 1416

Does WBTC follow BTC?

Does WBTC really follow the movements of BTC? I'm trying to understand the relationship between these two cryptocurrencies, as I've noticed some similarities in their price fluctuations. But I'm also aware that WBTC is a wrapped version of BTC, designed to function within the Ethereum ecosystem. So, does this mean that WBTC's price is solely determined by the price of BTC? Or are there other factors at play, like demand on the Ethereum network or liquidity pools? I'm interested in hearing your thoughts on this matter, as I'm still wrapping my head around the complexities of the crypto world.