On-chain data shows that Coinbase’s CBBTC is Ethereum’s fastest growing synthetic BTC offering. That supply has skyrocketed by more than 160% since the start of the year.
Previously, when Coinbase first launched CBBTC in September 2024, the landscape of synthetic BTC has changed dramatically It has been reported By cryptopolitan. At the time of publication, the supply of digital assets has increased from 1,000 worth of synthetic Bitcoin to over 30,500 CBBTC.
Coinbase registers WBTC
CBBTC and opinion.
CBBTC is an ERC20 token that is backed by Bitcoin (BTC) held by Coinbase.
This means millions of BTC holders have solid access to the Defi app in the @Base and Ethereum ecosystems.
This is what you need to know ↓pic.twitter.com/nf8mf3jgms
– Coinbase🛡️ (@coinbase) September 12, 2024
Despite CBBTC’s growth, WBTC, the largest synthetic BTC token on Ethereum, has dropped 17% in supply since CBBTC’s launch. At the time of writing, WBTC has also declined by 4% since the beginning of the year.
On-chain data also shows that the total supply of synthetic BTC at Ethereum has only increased by around 3% since CBBTC was launched in mid-September 2024. Compared with CBBTC growth over the past year, the difference in growth of other synthetic BTCs suggests that there has been a change in market share within the total synthetic BTC space.
The transition from Ethereum’s synthetic BTC products began in August 2024 after publisher Bitgo announcement Justin’s solar-related affiliates will play a major role in managing WBTC. Bitgo CEO Mike Belshe acknowledged Sun’s involvement in the joint venture, highlighting the company’s continued commitment to security.
solar It’s maintained His involvement in the WBTC is completely strategic. He also admitted that he has no control over the private key of the WBTC reserves and cannot move the BTC reserves.
Coinbase later listed synthetic BTC products on Ethereum on December 19, 2024. The crypto exchange claimed it regularly monitors assets on its platform to ensure it meets listing standards.
Coinbase has revealed that it has moved its WBTC order form to a limit-only mode. This means that users can restrict and cancel token orders on the platform. Additionally, users were able to move WBTC tokens from exchange even after they were deprecated.
WBTC’s listing has brought legal challenges from Bit Global, a Sun-backed company. Later on company It was dropped The lawsuit against bias against Coinbase means that it cannot bring it again.
Since its inception, the flow of replacement and transition from WBTC to CBBTC has driven much of the growth of tokens at Ethereum. CBBTC’s growth could also be attributed to Coinbase’s ability to inject BTC holders directly into CBBTC through existing custody, Prime brokerages and exchange rails. The initiative reduced hops and operational friction compared to third-party exchanges, allowing CBBTC to easily access institutions and Treasury that have already cleared Coinbase.
CBBTC growth can also be linked to integration into Persistence Dex V2 on June 25th. This initiative allows cross-chain swap of base and BNB chains via closed beta audit mainnets.
CBBTC’s cross-chain swap requires users to participate in ETH with a minimum of $10 in CBBTC and a gas fee of about $0.005. Coinbase’s wrapped Bitcoin initiative expands use cases to decentralized cross-chain liquidity beyond the Exchange ecosystem. CBBTC’s unaudited status and gate access limit immediate adoption, but demand could continue to increase as Persistence expands its BTCFI sector.
CBBTC-backed loans exceed $1 billion with collateral
Coinbase too It was revealed On July 15, CBBTC-backed loans exceeded $1 billion in collateral, driven by base Morpho Labs. Tokens have become a collateral option for Exchange due to their role in Coinbase’s on-chain ecosystem.
The increase in CBBTC’s collateral suggests a surge in its usefulness, signaling institutional and retail demand for retaining Coinbase’s wrapped BTC variant. Through Coinbase, the reliance on tokens on centralized custody limits growth between decentralized exchanges.
Coinbase will also introduce CBBTC’s BTC collateral preparation certificate. Platform announcement The token’s first on-launch initiative examines the 1:1 CBBTC support by Bitcoin under the custody of the exchange.
Coinbase is also planning to expand CBBTC’s cross-chain bitcoin utility beyond Ethereum to chains like Solana Take advantage of high-speed infrastructure for low-cost swap and lending use cases.
