Crypto exchange Coinbase joined the wrapped Bitcoin race only a week ago, on Sept. 12, but accumulated nearly 2,000 tokens in circulating supply so far, potentially challenging the dominance of long-established players.
Rapid Growth of cbBTC
According to data from CryptoQuant, cbBTC has grown in seven days to be the third-largest wrapped Bitcoin (BTC) token, surpassing tokens that have been in circulation since 2020, such as Huobi BTC (HBTC) and renBTC (RENBTC).
Wrapped BTC Market
To put it in perspective, BitGo’s wBTC — the first wrapped Bitcoin token launched in 2019 — took over a year to achieve similar figures. Still, it continues to dominate the wrapped BTC market, with nearly 153,000 tokens in circulation at the time of writing, far outpacing its closest competitor, tBTC, which has around 3,400 tokens. Wrapped BTC tokens are tokenized versions of Bitcoin that allow holders to trade, lend, and liquidate it in decentralized financial applications (DeFi). Coinbase’s large BTC holdings on its platform could help it gain a greater share of the wrapped tokens market. According to CryptoQuant’s analysis:
BitGo's Expansion
The wrapped token race has led BitGo to expand its wBTC presence across networks and geographies over the past few weeks. Earlier this month, the company adopted LayerZero’s Omnichain Fungible Token (OFT) Standard to allow the asset to be used across multiple blockchain networks, with initial rollout on Avalanche and BNB Chain. In addition, BitGo has recently announced a joint venture with BitGlobal, a regulated custody platform based in Hong Kong, deepening its regional presence in Asian markets.
The rapid growth of Coinbase's cbBTC in just one week indicates the exchange's potential in the wrapped BTC sphere and its eagerness to solidify its position in a market where older players already dominate.
Comments