Key Points
- Coinbase has launched Coinbase Wrapped BTC [cbBTC] on the Solana [SOL] blockchain.
- Solana’s Total Value Locked (TVL) has surged by 385% YTD, standing at $6.8 billion.
Coinbase has introduced its Wrapped Bitcoin, known as cbBTC, on the Solana blockchain. This is an SPL token that is fully backed by Bitcoin and held securely in Coinbase’s custody.
Integration of cbBTC into Solana
The introduction of cbBTC to the Solana blockchain follows Coinbase’s announcement at a recent event in Singapore. cbBTC joins a growing list of wrapped Bitcoin tokens on Solana, including tBTC and WBTC. Other upcoming assets include zBTC from Zeus Network and sBTC from Stacks.
This Bitcoin-backed wrapped token is expected to play a significant role in Solana’s decentralized finance (DeFi) landscape. It will provide new opportunities for liquidity and collateral in lending protocols. From its launch, cbBTC will be supported by several Solana-based DeFi platforms.
The year 2024 has been quite favorable for Solana on the DeFi front. According to data from Artemis, Solana’s Total Value Locked (TVL) has increased by 385% YTD, currently standing at $6.8 billion.
cbBTC’s $1B Milestone
While cbBTC has now entered Solana, it is not its debut. The token was initially launched on Ethereum and Coinbase’s Layer 2 network, Base. cbBTC reached the $1 billion market cap mark within nine weeks, a milestone that preceded its Solana launch. Despite being a relatively new player, cbBTC has already secured its position as the sixth-largest wrapped asset.
Meanwhile, SOL has rallied by double digits over the last seven days, triggered by BTC’s bull run. At press time, SOL exchanged hands at $198, around 23% shy of its all-time high (ATH). The altcoin saw a daily increase of 5.04% and an impressive 18.55% gain over the past week. The coin’s market capitalization also rose to $93.53 billion.
Despite a 35% drop in the 24-hour trading volume, SOL’s value and recent price surge demonstrated its continued momentum. The integration of cbBTC and other innovative assets continues to strengthen Solana’s position in the crypto market.
