Coinbase Wrapped BTC (CBBTC) Cryptocurrency Market Data and Information

We collect crypto information and data from numerous API sources. Our unique analytical approach and presentation, developed with the aid of AI tools, is designed to offer a distinct perspective. This information is not financial advice, and given the rapid pace of the crypto market, it may not always be perfectly current or complete. We urge you to always verify details and conduct your own thorough research. Consult with a qualified financial advisor before making any financial decisions.
Coinbase Wrapped BTC (CBBTC) Cryptocoin Logo

Coinbase Wrapped BTC (CBBTC) Trust Score

Crypto Center's Coinbase Wrapped BTC (CBBTC) Trust Score

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50.00
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Coinbase Wrapped BTC (CBBTC) Bull/Bear Trend Strength

7 Day Market Momentum

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30 Day Market Momentum

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0.000000
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Coinbase Wrapped BTC (CBBTC) Latest Market Data

Current Values

  • Current Price: $116,341
  • 24h Trading Volume: $362,034,818
  • Market Cap: $6,379,686,831
  • 24h Market Cap Change: ▲ $103,530,856
  • Fully Diluted Valuation: $6,379,686,831

Price Changes

  • 24 Hour Price Change: ▼ 0.80%
  • 7 Day Price Change: ▼ 2.06%
  • 30 Day Price Change: ▲9.87%
  • 60 Day Price Change: ▲10.42%
  • 1 Year Price Change: ▲0.00%

Current Price Relative to Yesterday Open/Close

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Current Price Relative to Yesterday High/Low

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Current Price Relative to 7 Day Open/Close

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Current Price Relative to 7 Day High/Low

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Current Price Relative to 30 Day Open/Close

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Coinbase Wrapped BTC (CBBTC) 30 Day Open, High, Low, Close Chart

What is Coinbase Wrapped BTC (cbBTC)?

Coinbase Wrapped BTC (cbBTC) is a wrapped token representing Bitcoin (BTC) on various blockchain networks. Think of it as a digital IOU for BTC, fully backed by actual Bitcoin held in Coinbase’s custody. For every cbBTC in circulation, Coinbase securely holds an equivalent amount of BTC in its reserves, which include cold storage solutions. This 1:1 backing is crucial, as it ensures that each cbBTC token can be redeemed for its corresponding BTC. The primary purpose of cbBTC is to bridge the gap between Bitcoin and decentralized finance (DeFi) ecosystems, allowing Bitcoin holders to utilize their assets in new and innovative ways within these platforms. Wrapped tokens such as cbBTC have become a popular approach in the crypto space to bring greater liquidity and utility to assets, facilitating a more interconnected and expansive financial environment. The process enables Bitcoin to be used on networks that are not natively compatible with the original Bitcoin blockchain.

How Does Coinbase Wrapped BTC (cbBTC) Work?

The functionality of cbBTC revolves around the minting and burning mechanism, which maintains the 1:1 peg with Bitcoin. This process is facilitated by smart contracts deployed on the supported blockchain networks, ensuring transparency and security. When a user wants to convert their BTC into cbBTC, they initiate a withdrawal of BTC from their Coinbase account to one of the supported networks (Ethereum, Base, or Solana). Upon initiating this withdrawal, an equivalent amount of cbBTC is minted – created – and transferred to the user’s specified wallet address on the chosen network. Conversely, when a user wishes to redeem their cbBTC for the underlying Bitcoin, they deposit their cbBTC into a designated Coinbase address. This action triggers the burning of the cbBTC, effectively destroying the token, and the corresponding amount of BTC is released from Coinbase’s custody and credited back to the user’s Coinbase BTC account. This bi-directional process ensures that the total supply of cbBTC accurately reflects the amount of Bitcoin held in reserve by Coinbase. The smart contracts governing these processes are open-source and available on platforms like GitHub, allowing for public verification and auditability. Furthermore, blockchain explorers such as Etherscan, BaseScan, and Solana Explorer can be used to verify the total supply of cbBTC on each respective network, providing further transparency and assurance.

Coinbase Wrapped BTC (cbBTC) Key Features and Technology

cbBTC boasts several key features that enhance its utility and security within the cryptocurrency ecosystem. Its interoperability stands out, enabling BTC to participate in ecosystems beyond its native blockchain. Key technologies and features include:

  • 1:1 Backing: Each cbBTC is backed by an equivalent amount of BTC held in Coinbase’s secure reserves, ensuring redeemability and stability.
  • Smart Contract Functionality: Minting and burning processes are managed by transparent, auditable smart contracts on various blockchain networks.
  • Multi-Network Support: cbBTC is available on Ethereum, Base, and Solana, enabling access to a wide range of DeFi applications across different ecosystems.
  • Security Measures: Coinbase employs advanced wallet infrastructure, regular audits, and real-time monitoring to secure the underlying Bitcoin reserves.
  • Custodianship: BTC backing cbBTC is held by Coinbase in a combination of hot and cold wallets, managed securely within the United States and Europe. Private keys are encrypted and require multiple human operators for decryption.
  • Role-Based Key System: Control over the cbBTC smart contract is managed by a role-based key system, including roles for admin, owner, blacklister, masterMinter, minter, and pauser.

What is Coinbase Wrapped BTC (cbBTC) Used For?

The primary use case for cbBTC is to unlock the potential of Bitcoin within the DeFi space. Bitcoin, while being the largest cryptocurrency by market capitalization, has limited functionality within DeFi ecosystems due to its native blockchain’s limitations. cbBTC addresses this issue by providing a wrapped version of Bitcoin that is compatible with various DeFi platforms. Users can utilize cbBTC for several purposes:

  • Providing Liquidity: Users can contribute cbBTC to liquidity pools on decentralized exchanges (DEXs) and earn trading fees.
  • Collateral for Lending: cbBTC can be used as collateral to borrow other crypto assets on lending platforms.
  • Payments: cbBTC can be used as a payment method on supported platforms, enabling Bitcoin holders to make transactions within DeFi ecosystems.
  • Yield Farming: Some DeFi platforms offer yield farming opportunities, where users can earn rewards by staking their cbBTC.
  • Cross-Chain Transfers: cbBTC facilitates the movement of Bitcoin value across different blockchain networks, enabling participation in diverse DeFi ecosystems.

By enabling Bitcoin to be used in these applications, cbBTC aims to increase the utility and adoption of Bitcoin within the broader cryptocurrency landscape. It provides Bitcoin holders with new avenues to generate yield and participate in the growing DeFi ecosystem.

How Do You Buy Coinbase Wrapped BTC (cbBTC)?

Purchasing cbBTC involves a specific process, primarily because it is a wrapped token designed to be used within the Coinbase ecosystem and on supported networks. Typically, you won’t buy cbBTC directly on a cryptocurrency exchange in the traditional sense. Instead, the process generally involves the following steps:

  1. Acquire Bitcoin (BTC): If you don’t already own Bitcoin, you’ll need to purchase it from a reputable cryptocurrency exchange like Coinbase, Binance, Kraken, or other platforms that offer BTC trading.
  2. Deposit BTC to Coinbase: Transfer your purchased BTC to your Coinbase account.
  3. Withdraw BTC to Supported Network (Mint cbBTC): Initiate a withdrawal of your BTC from Coinbase to a wallet address on one of the supported networks (Ethereum, Base, or Solana). This withdrawal will trigger the minting of an equivalent amount of cbBTC.
  4. Ensure Compatibility: To ensure cbBTC appears in your external wallet (MetaMask etc) you must add the token contract address to the wallet settings, on the appropriate network.
  5. Access cbBTC in Wallet: Once the transaction is confirmed, the newly minted cbBTC will appear in your wallet on the selected network.

Alternatively, you may be able to acquire cbBTC on decentralized exchanges (DEXs) like Uniswap (on Ethereum) or similar platforms on Base or Solana if liquidity is available. However, it’s crucial to verify the authenticity of the cbBTC token contract address to avoid purchasing counterfeit tokens. This contract address can be found through the Coinbase documentation.

How Do You Store Coinbase Wrapped BTC (cbBTC)?

Storing cbBTC depends on the network it resides on (Ethereum, Base, or Solana). Since cbBTC is a token on these blockchains, you’ll need a compatible wallet that supports the respective network. Here are some options:

  • Ethereum (ERC-20):
    • MetaMask: A popular browser extension and mobile wallet that supports Ethereum and other EVM-compatible networks.
    • Trust Wallet: A mobile wallet that supports a wide range of cryptocurrencies, including ERC-20 tokens.
    • Ledger Nano S/X: A hardware wallet that provides secure offline storage for your private keys. When used with MetaMask or other compatible wallets, it provides an extra layer of security.
    • Trezor: Another popular hardware wallet that offers secure storage for cryptocurrencies.
  • Base:
    • Wallets compatible with Ethereum, such as MetaMask, can also be used with the Base network by adding the appropriate network configuration.
  • Solana (SPL):
    • Phantom: A popular Solana wallet known for its user-friendly interface and support for SPL tokens.
    • Solflare: Another Solana wallet with similar functionality to Phantom.
    • Ledger Nano S/X: The Ledger Nano S/X also supports Solana and SPL tokens, providing secure hardware storage.

When choosing a wallet, consider factors such as security, ease of use, and compatibility with the network you’re using cbBTC on. Hardware wallets are generally considered the most secure option, as they keep your private keys offline. Software wallets, like MetaMask and Phantom, offer convenience but require you to take extra precautions to protect your device from malware and phishing attacks. Always ensure that you are using a reputable wallet provider and follow best practices for security, such as enabling two-factor authentication and storing your seed phrase in a safe place.

Future Outlook and Analysis for Coinbase Wrapped BTC (cbBTC)

The future of cbBTC is intertwined with the growth and adoption of both Bitcoin and the DeFi ecosystem. As the demand for Bitcoin continues to rise, and as more users seek to utilize their Bitcoin holdings within DeFi applications, the utility and adoption of cbBTC are likely to increase. Coinbase’s backing and established reputation in the cryptocurrency industry provide a strong foundation for the growth of cbBTC. The compliance and security measures implemented by Coinbase instill confidence in users, making cbBTC a potentially attractive option for those seeking to bridge the gap between Bitcoin and DeFi.

However, several factors could influence the future trajectory of cbBTC. Competition from other wrapped Bitcoin solutions, such as Wrapped Bitcoin (WBTC), could impact its market share. The regulatory landscape surrounding cryptocurrencies and DeFi could also pose challenges. Changes in user preferences and the emergence of new technologies could also affect the demand for cbBTC. The number of supported networks for cbBTC and the overall activity of decentralized finance on those networks will also influence adoption. Coinbase adding features for cbBTC, such as direct swaps or earning capabilities could also lead to increased demand.

Overall, the future outlook for cbBTC appears promising, given the increasing demand for Bitcoin and the continued growth of DeFi. However, it’s essential to monitor the evolving landscape and potential challenges to assess its long-term success.

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