Coinbase has launched its wrapped Bitcoin token, reaching a $100 million market cap shortly after its debut.
Coinbase Wrapped BTC (cbBTC) is an Ethereum-based token backed by Bitcoin, designed to simplify users’ experience with decentralized finance (DeFi).
According to CoinGecko data, cbBTC began trading on September 12 and surpassed a $100 million market cap within 24 hours.
Coinbase has outlined how BTC holders can leverage cbBTC to enhance their DeFi interactions. By converting their Bitcoin into cbBTC, users can seamlessly use their assets in DeFi applications, such as providing liquidity or using it as collateral for borrowing crypto. The conversion process is automatic, with Bitcoin sent from Coinbase accounts to Base or Ethereum addresses being exchanged 1:1 for cbBTC, and the reverse occurring when receiving cbBTC back into Coinbase.
However, not everyone is supportive. Tron founder Justin Sun criticized cbBTC, calling it too centralized and lacking transparency. Sun expressed concerns about the absence of Proof of Reserve, audits, and the potential for account freezing, arguing that a government subpoena could seize all BTC linked to cbBTC.
At present, cbBTC ranks as the 402nd-largest cryptocurrency, with a market cap of just over $97 million.
Bitcoin soared to a new all-time high above $119,000 on July 13, extending its bullish momentum on the back of institutional accumulation, shrinking exchange reserves, and technical breakout patterns.
A major shift in the crypto cycle may be approaching as Bitcoin dominance (BTC.D) once again reaches critical long-term resistance.
Galaxy Digital CEO Mike Novogratz reignited a long-running feud with economist and gold advocate Peter Schiff after the latter criticized Биткойн yet again.
Gold advocate Peter Schiff issued a stark warning on monetary policy and sparked fresh debate about Bitcoin’s perceived scarcity. In a pair of high-profile posts on July 12, Schiff criticized the current Fed rate stance and challenged the logic behind Bitcoin’s 21 million supply cap.