Coinbase Wrapped Bitcoin Hits $100 Million Market Cap

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Coinbase’s new packaged Bitcoin token, cbBTC, has reached a market cap of $100 million after its debut on Ethereum and Base, according to data from Dune Analytics.

Coinbase Wrapped Bitcoin now has a circulating supply of 1,720 tokens, with about 42% on Base and about 58% on Ethereum, the data shows.

Launched on Thursday, cbBTC is part of Coinbase’s ongoing efforts to improve Bitcoin’s utility in DeFi applications. The new token competes directly with BitGo’s WBTC, which is currently the most widely used DeFi-enabled version of Bitcoin.

In a statement following Coinbase’s hints of a Bitcoin launch, Nascent co-founder Dan Elitzer suggested that cbBTC would be a strategic move for Coinbase. Elitzer predicted that it could surpass BitGo’s supply of WBTC within six months.

At launch, Coinbase’s new token also received positive feedback from industry experts, particularly for its potential to boost DeFi activities on Base, Coinbase’s Tier 2 network.

Moonwell’s DeFi contributor Luke Youngblood said cbBTC’s fungibility on Coinbase will allow retail and institutional Bitcoin holdings to seamlessly integrate with its on-chain ecosystem.

Nansen CEO Alex Svanevik noted that Coinbase currently holds about 36% of the supply, while market maker Wintermute is among the top holders. Svanevik predicted that the token will substantially increase Base’s total assets through its rapid adoption.

“This could blow up the total assets on (Base) pretty quickly,” Svanevik said. “Smart move. Apparently Wintermute is the #1 market maker for it. It will be a solid business for them.”

However, not everyone is convinced. TRON founder Justin Sun expressed skepticism about the token’s lack of Proof of Reserve audits and the potential for government intervention. He argued that cbBTC could pose security risks to DeFi protocols and undermine decentralization.

“… cbbtc integration will present major security risks to decentralized finance. A single government subpoena could instantly freeze Bitcoin on-chain, making decentralization a joke,” Sun noted.

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