Coinbase cbBTC is preparing for the incorporation of Solana in response to the increasing demand
Despite its presence on only two networks, cbBTC has managed to increase its supply to $124 million.
On the Solana network, Coinbase’s Bitcoin product, cbBTC, will shortly be available. At the Solana Breakpoint event, Hassan Ahmed, the exchange country director for Singapore, disclosed this information.
Despite the fact that Coinbase initially introduced cbBTC on Base and Ethereum, the exchange is also contemplating an expansion to Solana due to the popularity of the network among its users, according to Hassan.
He stated: “We have recently introduced cbBTC on Base; however, our consumers and we both appreciate Solana. Therefore, we are thrilled to inform you that we will be introducing native cbBTC to Solana as well.”
cbBTC will become a member of the Solana network, joining the other wrapped Bitcoins that have either launched or are in the process of launching. Stacks, a Bitcoin layer-2 network, also disclosed that it will incorporate its tokenized synthetic Bitcoin (sBTC) into Solana less than 24 hours ago.
In contrast to sBTC, which is decentralized, cbBTC is a centralized version of encapsulated Bitcoin. However, both serve the same purpose by enabling the use of Bitcoin on a programmable network like Solana. The integration of these bundled Bitcoin alternatives could increase the available liquidity for Solana decentralized applications (dApps) by enabling Bitcoin holders to engage in the DeFi ecosystem on the network.
In the interim, the recently introduced enclosed Bitcoin could receive a substantial lift by incorporating cbBTC into Solana. Although it has only been operational for one week and is available on two networks, it has already amassed a supply of $124.27 million and a transaction volume of $606.95 million in the past 24 hours, indicating that it is being utilized extensively.
Nevertheless, cbBTC remains significantly smaller than the BitGo-wrapped Bitcoin WBTC, which is the largest cryptocurrency by all metrics. With nearly $10 billion in the market, WBTC comprises 96.6% of the wrapped Bitcoin supply on Ethereum. It could position itself to attract more users and see its supply increase by deploying on Solana.
However, the recent controversy surrounding the transfer of WBTC reserves custody to a joint venture may be advantageous to cbBTC in its competition with WBTC. Numerous members of the DeFi community have already expressed their apprehensions regarding the transition and may transition to cbBTC when it occurs.
However, there are those who oppose cbBTC. Despite the fact that it is stable as a result of its affiliation with Coinbase, there are apprehensions that its centralized nature could be detrimental to Bitcoin, as it grants Coinbase control over free BTC proprietors. Justin Sun, the founder of Tron and one of the sponsors of the new venture for WBTC, has criticized the move as a “dark day” for Bitcoin, despite Coinbase’s assurance that users will not lose their Bitcoin.
In the interim, the Coinbase announcement did not specify a specific deployment date on Solana. However, this development contributes to the network’s active and optimistic week, which was influenced by the Breakpoint Conference. Over the past seven days, SOL, the native token of the platform, has experienced a substantial increase of over 8%. It is currently trading at approximately $148.
Now that the Breakpoint conference has concluded, numerous users anticipate that the event will announce numerous integrations and deployments in the months ahead. The extent to which Solana can sustain its favorable momentum may be contingent upon the rate at which these integrations occur.
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