Categories: MarketsMenafn

Coinbase’s Wrapped Bitcoin Hits $1B Market Cap in Record Time

With a market value of $1 billion in just 57 days since its launch, wrapped Bitcoin on Coinbase (cbBTC) has set a new milestone.

Dune Analytics data shows that Coinbase Wrapped BTC’s market capitalization is $1.31 billion, of which Ethereum accounts for roughly $855.4 million. Ethereum holds more than 12,000 of the total 14,678 cbBTC tokens in circulation, while Base Layer-2 and Solana hold 2,388 and 262 tokens of the remaining holdings, respectively.

 

Coinbase’s Wrapped Bitcoin Market Cap | Source: Dune

Coinbase’s Wrapped Bitcoin Boosts Cross-Chain DeFi Use

With more activity in Ethereum-based assets relative to other Bitcoin liquid staking tokens, cbBTC’s rapid expansion reflects the great demand for Bitcoin-pegged assets. This rise has piqued the interest of DeFi protocols like Aave, which has already included Coinbase Wrapped BTC into its V3 protocol to increase user liquidity.

Since Coinbase launched cbBTC on its Base Layer-2 blockchain in mid-August, the asset has quickly established itself as a competitor to Wrapped Bitcoin (WBTC), even though the latter has a market capitalization of $12.88 billion. By grabbing approximately 10% of WBTC’s market capitalization in a short period, Coinbase’s Wrapped BTC has proven that there’s a shift in market dynamics.

Seeking Cost-Effective Options

Users and protocols seek flexible, cost-effective choices for Bitcoin-wrapped assets across several networks. For instance, Coinbase Wrapped BTC on Solana gives holders access to low fees and fast transaction rates, critical for high-frequency DeFi transactions.

Coinbase’s rollout of cbBTC challenges WBTC’s supremacy, offering DeFi members more decentralized options. During cbBTC’s launch, venture capitalist Dan Elitzer noted thatCoinbase’s timing for providing this product might promote significant adoption.

He also predicted that cbBTC’s supply would exceed WBTC’s within six months. Meanwhile, Coinbase’s approach to Proof of Reserves (PoR) for cbBTC has aroused criticism, particularly because it’s similar to WBTC’s management.

Consequently, cbBTC may face challenges similar to FTX if it fails to offer adequate backing for its produced tokens.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

Cardano’s ADA Price Rises Above $0.80 Despite Broader Market Slump: How High Can ADA Go?

Cardano’s native token (ADA) has performed well despite the downturn in the broader crypto market.…

9 hours ago

Cornerstone Wealth Management Expands Services, Offering Tax, Medicare, & Estate Planning for Retirement Solutions

Henderson, NV – Cornerstone Wealth Management is thrilled to announce the expansion of its suite…

9 hours ago

Cornerstone Wealth Management Debuts “The Cornerstone Retirement Blueprint” TV Show to Help Retirees Tackle Financial Challenges

Henderson, NV – Cornerstone Wealth Management is excited to announce the premiere of its new…

9 hours ago

MicroStrategy’s Bitcoin Premium Surges as MSTR’s Market Cap Tops $100 Billion

The total market capitalization of the Nasdaq-listed business intelligence firm MicroStrategy, the largest corporate holder…

21 hours ago

Royal Hound and FCI Propose Innovative Approach to Maintaining Canine Health – Joint Research Findings Announced

The UK pet pharmaceutical company Royal Hound has partnered with the Fédération Cynologique Internationale (FCI)…

23 hours ago

Artificial Turf Tampa Expands Custom Putting Green Installations to Orlando, Vero Beach, West Palm Beach, and Georgia

Artificial Turf Tampa, a leader in synthetic turf solutions, has expanded its custom putting green…

1 day ago