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Coinbase\u2019s<\/a> newly launched wrapped Bitcoin<\/a> product, cbBTC, has seen rapid adoption within its first 24 hours, with a market capitalization nearing $100 million.<\/p>\n Data<\/a> from Dune Analytics shows the circulating supply of cbBTC has reached 1,720 tokens, valued at $99.8 million. Of this, 43% is on Base, while 57% resides on Ethereum<\/a>.<\/p>\n Industry analysts have noted that Coinbase\u2019s cbBTC growth could significantly boost DeFi activities on the exchange\u2019s layer-2 network, Base.<\/p>\n Luke Youngblood, a contributor to Moonwell DeFi, highlighted the product\u2019s impact. He pointed out<\/a> that cbBTC\u2019s fungibility with Bitcoin on Coinbase would enable retail BTC holdings exceeding $20 billion and institutional holdings over $200 billion to seamlessly integrate with Base\u2019s on-chain ecosystem.<\/p>\n Nansen<\/a> CEO Alex Alealso praised the token\u2019s rapid adoption and predicted that it would substantially increase total assets on the Base network.<\/p>\n Further, He shared that Coinbase currently holds about 36% of the supply, while market maker Wintermute ranks among the top holders. Svanevik remarked<\/a>:<\/p>\n \u201c[It appears] Wintermute is the #1 market maker. [It will] be a solid business for them.\u201d<\/p>\n<\/blockquote>\n Despite cbBTC\u2019s early success, not everyone is optimistic.<\/p>\n TRON<\/a> founder Justin Sun voiced skepticism, dubbing cbBTC \u201ccentral bank BTC\u201d due to its lack of Proof of Reserve audits and potential government intervention.<\/p>\n He stated:<\/p>\n \u201ccbbtc lacks Proof of Reserve, no audits, and can freeze anyone\u2019s balance anytime. Essentially, it\u2019s just \u2018trust me.\u2019 Any US government subpoena could seize all your BTC. There\u2019s no better representation of central bank Bitcoin than this. It\u2019s a dark day for BTC.\u201d<\/p>\n<\/blockquote>\n Sun further claimed that integrating cbBTC into DeFi could introduce security risks, as government subpoenas could instantly freeze on-chain Bitcoin, undermining decentralization. He said<\/a>:<\/p>\n \u201cI\u2019m friends with many DeFi protocol founders, but integrating cbbtc will pose major security risks to decentralized finance. A single government subpoena could freeze on-chain Bitcoin instantly, making decentralization a joke.\u201d<\/span><\/p>\n<\/blockquote>\n Some have suggested Sun\u2019s criticisms may stem from concerns that Coinbase\u2019s cbBTC could encroach on the market share of BitGo\u2019s<\/a> WBTC<\/a>\u2014<\/span>a project with which Sun has ties. Notably, his involvement with WBTC has sparked debate within the crypto community, as some now seek alternatives.<\/p>\n Coinbase\u2019s newly launched wrapped Bitcoin product, cbBTC, has seen rapid adoption within its first 24 hours, with a market capitalization nearing $100 million. Data from Dune Analytics shows the circulating supply of cbBTC has reached 1,720 tokens, valued at $99.8 million. Of this, 43% is on Base, while 57% resides on Ethereum. Coinbase cbBTC Supply […]<\/p>\n","protected":false},"author":2,"featured_media":353854,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[274,273,272,244,266,271,268,270,269,267],"class_list":["post-353851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-de-fi","tag-crypto-finance","tag-decentralized-finance","tag-liquidity","tag-metamask","tag-pancake","tag-slippage","tag-sushiswap","tag-tronlink","tag-trust-wallet","tag-uniswap"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=353851"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353851\/revisions"}],"predecessor-version":[{"id":353856,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/353851\/revisions\/353856"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/353854"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=353851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=353851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=353851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Base\u2019s DeFi growth<\/h2>\n
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Sun FUDs cbBTC<\/h2>\n
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Mentioned in this article<\/h6>\n<\/div>\n","protected":false},"excerpt":{"rendered":"