As a researcher with extensive experience in the crypto sphere, I find the recent move by Coinbase to introduce its wrapped Bitcoin (cbBTC) on the Solana blockchain an exciting development. Having closely followed the evolution of DeFi and the adoption of Bitcoin across various platforms, it’s intriguing to see a significant player like Coinbase venturing into new territories.
Coinbase, the top crypto trading platform globally, has introduced its version of Bitcoin wrapped on the Solana blockchain, starting from November 7th. This initiative aims to boost Bitcoin’s usage in the realm of decentralized finance (DeFi) by unveiling cbBTC – a token that maintains a 1:1 correlation with actual Bitcoin.
Coinbase has released its first coin on the Solana platform, and they’re thrilled to make Bitcoin more accessible via this new venture. The cbBTC token operates within the framework of a Solana Program Library (SPL) token, symbolizing interchangeable assets within the Solana network.
On the Solana platform, cbBTC is now operational. cbBTC is a token based on SPL that is directly tied to Bitcoin (BTC) held securely by Coinbase in a 1:1 ratio. This is the first time Coinbase has issued a token on Solana, and it brings simpler access to Bitcoin for everyone. Here are some of the things you can do with your cbBTC right from the start:
— Coinbase 🛡️ (@coinbase) November 7, 2024
Based on information from Solscan, the blockchain explorer for Solana, it’s been reported that Coinbase has moved approximately 135 cbBTC, which is around $10 million, to the Solana network. Now, you can find this token on various decentralized exchanges and DeFi platforms built on Solana such as Jupiter, Meteora, Kamino Finance, Raydium, Phoenix, Jito, and Drift.
Solana’s DeFi Expansion with cbBTC
The team at Kamino Finance, a lending and liquidity platform built on the Solana network, have expressed their aspiration for Kamino to become one of the leading Bitcoin (cbBTC) venues in decentralized finance (DeFi). cbBTC is an innovation that addresses the shortcomings of soBTC, a previous wrapped Bitcoin solution on Solana, which experienced difficulties during the FTX exchange crisis.
At the Breakpoint event in September, it was initially disclosed by Coinbase Singapore’s head, Hassan Ahmed, about the development of cbBTC. This new token is now part of an expanding collection of Bitcoin variants with programmable features on the Solana network, which includes tBTC from Threshold, zBTC from Zeus Network, and WBTC through Wormhole, as the Solana team announced on November 7.
Ever since its debut in mid-September, the value of Coinbase’s wrapped Bitcoin product has skyrocketed past the $1 billion mark, making it a formidable contender against BitGo’s Wrapped Bitcoin. The latter boasts a market capitalization of $11 billion and is extensively utilized across numerous blockchain networks.
Solana’s DeFi Sector Sees Significant Growth
By the year 2024, Solana’s decentralized finance (DeFi) sector experienced substantial growth. The amount of money locked within Solana DeFi soared to a staggering $8.25 billion, marking a 250% increase from the start of the year, as reported by DefiLlama. On the other hand, Ethereum‘s DeFi sector has been growing at a more gradual pace this year, with the total value locked increasing by 72%, reaching $60 billion.
The surge in positive events has additionally propelled Solana’s native token, SOL. Following the cbBTC announcement, its price climbed by 3.4% and hit $200 during early trades on November 8.
Introducing cbBTC on Solana by Coinbase expands Bitcoin’s role within Decentralized Finance (DeFi) and bolsters the variety of decentralized financial solutions. This action underscores the increasing cooperation between significant cryptocurrency platforms and blockchain networks, aiming to boost the spread of digital assets.
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2024-11-08 14:00