Bitcoin Backed Token Announced By Coinbase: BTC Holders Can Now Access DeFi Apps on Base

As a seasoned crypto investor with a decade of experience navigating the volatile digital asset market, I find the recent move by Coinbase to introduce cbBTC particularly exciting. Having witnessed the evolution of Bitcoin from its humble beginnings to becoming a global phenomenon, it’s inspiring to see new ways to engage with decentralized finance that unlock the true potential of this revolutionary technology.


In recent days, Bitcoin has experienced an approximately 5% increase since Wednesday, yet the preceding weeks have been marked by fluctuation and doubt. Nevertheless, an important statement from Coinbase has ignited renewed enthusiasm among Bitcoin owners, as they anticipate potential DeFi possibilities.

Yesterday, I’m excited to announce the launch of Coinbase Wrapped BTC (cbBTC), an ERC20 token that is fully collateralized by one Bitcoin (BTC) for every cbBTC issued, which are securely held by Coinbase. At this point, cbBTC will be available on Base and Ethereum platforms, with future plans to extend support to additional blockchains.

As a crypto investor, I’m excited about this development that empowers me to discover novel methods of interacting with Decentralized Finance (DeFi). This move essentially grants me more freedom to utilize my Bitcoin on various platforms, broadening its utility and enhancing its potential.

Introducing cbBTC by Coinbase signifies a significant stride towards augmenting financial autonomy within the cryptocurrency realm. This move provides Bitcoin users with expanded possibilities to capitalize on their resources, all while remaining intertwined with the rapidly expanding Decentralized Finance (DeFi) community.

Bitcoin Is Now Available On Base

Coinbase is pioneering an innovative move by connecting substantial Bitcoin liquidity stored off-chain with swift, affordable financial systems on Binance Smart Chain and Ethereum.

Bitcoin Backed Token Announced By Coinbase: BTC Holders Can Now Access DeFi Apps on Base

Via cbBTC, the firm facilitates Bitcoin owners to employ their assets across multiple blockchains, thereby promoting a more interwoven financial infrastructure. Wrapped tokens such as cbBTC empower users to utilize Bitcoin in innovative ways, thus connecting traditional Bitcoin ownership with decentralized finance (DeFi).

cbBTC streamlines the process of transferring assets across blockchains, making it effortless for DeFi apps to work harmoniously with it. This facilitates innovative applications like supplying Bitcoin as liquidity within DeFi platforms or using it as security for borrowing various cryptocurrencies.

cbBTC will initially be accessible on various decentralized exchanges (DEXs) including Aerodrome, Curve, Matcha, Uniswap, as well as lending platforms such as Aave, Compound, Morpho, Moonwell, and Spark. Moreover, it can also be utilized in real-world asset (RWA) protocols like Maple at its introduction.

Whenever Coinbase account holders transfer Bitcoin to addresses on other platforms like Binance or Ethereum, the Bitcoin instantly switches to cbBTC at a 1:1 ratio. Similarly, if users get cbBTC in their Coinbase accounts, it will transform back into Bitcoin.

Essentially, cbBTC won’t be traded directly on Coinbase with its own market or queue, instead, it can be traded through Decentralized Exchanges (DEXs) using the Coinbase Wallet. It may also become available for trading on other platforms that decide to incorporate it as well.

Bitcoin Price Testing Key Resistance

Currently, Bitcoin (BTC) is trading at approximately $58,302, getting nearer to higher values. But for a continuous increase in price, it needs to surpass its 4-hour 200 exponential moving average (EMA), which stands at around $58,717 – almost 1% above the current price level.

Bitcoin Backed Token Announced By Coinbase: BTC Holders Can Now Access DeFi Apps on Base

Since the beginning of August, this Exponential Moving Average (EMA) has played a vital role as a short-term resistance level. If Bitcoin manages to surpass and sustain its position above this EMA, it could indicate a shift in trend and possibly push BTC towards testing the next substantial supply barrier approximately at $61,500. This specific level will be an essential resistance point that should be closely monitored.

If Bitcoin fails to rise above $60,000 in the coming days, it could indicate a period of consolidation or even a more significant drop. This situation suggests that the current resistance level is strong and Bitcoin might encounter additional hurdles as it tries to climb higher. Keep an eye on Bitcoin’s efforts to surpass this resistance for clues about its short-term direction.

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2024-09-14 03:42