1 week ago
Coinbase’s recently launched wrapped Bitcoin product, cbBTC, has seen accelerated adoption wrong its archetypal 24 hours, with a marketplace capitalization nearing $100 million.
Data from Dune Analytics shows the circulating proviso of cbBTC has reached 1,720 tokens, valued astatine $99.8 million. Of this, 43% is connected Base, portion 57% resides connected Ethereum.
Coinbase cbBTC Supply (Source: Dune Analytics)Base’s DeFi growth
Industry analysts person noted that Coinbase’s cbBTC maturation could importantly boost DeFi activities connected the exchange’s layer-2 network, Base.
Luke Youngblood, a contributor to Moonwell DeFi, highlighted the product’s impact. He pointed out that cbBTC’s fungibility with Bitcoin connected Coinbase would alteration retail BTC holdings exceeding $20 cardinal and organization holdings implicit $200 cardinal to seamlessly integrate with Base’s on-chain ecosystem.
Nansen CEO Alex Alealso praised the token’s accelerated adoption and predicted that it would substantially summation full assets connected the Base network.
Further, He shared that Coinbase presently holds astir 36% of the supply, portion marketplace shaper Wintermute ranks among the apical holders. Svanevik remarked:
“[It appears] Wintermute is the #1 marketplace maker. [It will] beryllium a coagulated concern for them.”
Sun FUDs cbBTC
Despite cbBTC’s aboriginal success, not everyone is optimistic.
TRON laminitis Justin Sun voiced skepticism, dubbing cbBTC “central slope BTC” owed to its deficiency of Proof of Reserve audits and imaginable authorities intervention.
He stated:
“cbbtc lacks Proof of Reserve, nary audits, and tin frost anyone’s equilibrium anytime. Essentially, it’s conscionable ‘trust me.’ Any US authorities subpoena could prehend each your BTC. There’s nary amended practice of cardinal slope Bitcoin than this. It’s a acheronian time for BTC.”
Sun further claimed that integrating cbBTC into DeFi could present information risks, arsenic authorities subpoenas could instantly frost on-chain Bitcoin, undermining decentralization. He said:
“I’m friends with galore DeFi protocol founders, but integrating cbbtc volition airs large information risks to decentralized finance. A azygous authorities subpoena could frost on-chain Bitcoin instantly, making decentralization a joke.”
Some person suggested Sun’s criticisms whitethorn stem from concerns that Coinbase’s cbBTC could encroach connected the marketplace stock of BitGo’s WBTCa task with which Sun has ties. Notably, his engagement with WBTC has sparked statement wrong the crypto community, arsenic immoderate present question alternatives.
The station Coinbase’s cbBTC soars to $100M successful archetypal time contempt Justin Sun’s criticism appeared archetypal connected CryptoSlate.
English (US) 