- Coinbase’s packaged Bitcoin product has surpassed the $1 billion market cap on Solana.
- Solana price continued to shine amid broader crypto ecosystem boom.
Recently launched on the Solana blockchain, the Coinbase Wrapped BTC (cbBTC) product has crossed the billion-dollar market capitalization milestone. This update comes amid a rise in the price of Solana and a boom in the decentralized finance (DeFi) sector.
Coinbase’s cbBTC debuts on Solana
Coinbase recently announced in a Message that he launched the cbBTC token on the protocol. According to Coinbase, cbBTC is an SPL token backed 1:1 by Bitcoin (BTC) and held by the exchange. CNF reported that cbBTC initially debuted on Base, Coinbase’s Layer-2 solution and the Ethereum network.
cbBTC is online @solana.
cbBTC is an SPL token backed 1:1 by Bitcoin (BTC) owned by Coinbase.
This is the first token Coinbase has issued on Solana, and with it we are excited to make BTC easier to access.
Here’s what you can do with your cbBTC from day one ↓
– Coinbase 🛡️ (@coinbase) November 7, 2024
It is worth noting that Coinbase announced the deployment of cbBTC on Solana during its Breakpoint event in Singapore in late September. cbBTC joins a growing list of Bitcoin tokens wrapped on Solana, including tBTC and WBTC (via Wormhole). This is in addition to upcoming assets such as zBTC from Zeus Network and sBTC from Stacks.
Notably, Coinbase’s cbBTC is already supported by major Solana-based DeFi platforms. This includes Jupiter Exchange, Kamino Finance, Meteora AG, Jito Labs, Phoenix, Drift Protocol, Raydium, Orca, Save Finance and Manifest. Therefore, many expect it to play an important role in Solana’s DeFi ecosystem, opening new prospects for liquidity and collateral in lending protocols.
Interestingly, the Solana DeFi ecosystem has seen phenomenal growth this year. For example, Solana’s total value locked (TVL) has increased 385% year-to-date, according to the latest report. data of Artemis. At press time, it stood at $7 billion.
The growth of Solana DeFi is also demonstrated by the fact that cbBTC reached the market capitalization of $1 billion in just nine weeks. Additionally, cbBTC consolidated its position as the sixth largest wrapped asset, according to at CoinMarketCap. The price of the token increased by 0.85% in the last 24 hours and by 9.8% in the past week.
Among BTC-backed assets, cbBTC is only behind Wrapped Bitcoin (WBTC), demonstrating its growing adoption by users.
Current Solana Market Performance
Meanwhile, the price of SOL has increased by double digits over the past seven days, fueled by the BTC bull run. Consequently, SOL soared to $198, almost 23% lower than its all-time high (ATH). At press time, SOL is trading at $200down 1.5% in the last 24 hours, but increased by 20.8% in the weekly period.
SOL is currently ranked as the 4th largest cryptocurrency, with a market capitalization of $94.5 billion. The 24-hour trading volume was $4.3 billion, a decline of 24%. Despite this decline, SOL’s value and recent price rise indicate its continued momentum. Veteran trader Peter Brandt predicted Solana could reach near $260 by overcoming critical resistance levels.
The addition of cbBTC and other new assets strengthens Solana’s position in the crypto market.
