Coinbase’s newly launched cbBTC nears a 100M market cap within 24 hrs of launch.
Nansen CEO praised cBTC’s rapid adoption, predicting its influence on Base network’s assets.
Coinbase’s newly launched wrapped Bitcoin product, cbBTC, has quickly gained traction, amassing a market capitalization of nearly $100 million within its first 24 hours.
According to Dune Analytics, cbBTC’s circulating supply stands at 1,720 tokens, valued at $99.8 million. Of this, 43% is held on Base, Coinbase’s layer-2 network, while 57% is on Ethereum.
Industry analysts believe cbBTC could significantly enhance DeFi activities on Base. Luke Youngblood from Moonwell DeFi highlighted that cbBTC’s compatibility with Bitcoin on Coinbase could allow substantial retail and institutional Bitcoin holdings over $20 billion and $200 billion, to seamlessly integrate with Base’s ecosystem.
Nansen CEO Alex also praised cbBTC’s rapid adoption, predicting it will greatly boost total assets on the Base network. Notably, Coinbase itself holds about 36% of the cbBTC supply, with market maker Wintermute among the top holders.
TRON Founder Justin Sun Criticizes cbBTC, Citing Concerns
Despite the positive outlook, not everyone is convinced. TRON founder Justin Sun has voiced strong skepticism, labeling cbBTC as “central bank BTC.” Sun criticized cbBTC for lacking Proof of Reserve audits.
Also, he claimed that government subpoenas could freeze on-chain Bitcoin, undermining decentralization. In addition, he argued that cbBTC’s potential to be controlled by government actions represents a significant departure from Bitcoin’s decentralization principles.
Moreover, Sun’s criticism has sparked speculation that his concerns may be driven by competitive pressures, as cbBTC could potentially rival BitGo’s WBTC, a project with which Sun is associated. This debate highlights ongoing tensions in the crypto space, as new products like cbBTC reshape the landscape.
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