Coinbase has taken a step to enhance the decentralized finance (DeFi) landscape by launching its WBTC on Solana.
Coinbase has expanded its presence in the decentralized finance (DeFi) realm by introducing its wrapped Bitcoin (WBTC) on the Solana blockchain. In an X post on Friday, the company announced the launch of cbBTC, describing it as the first-ever wrapped Bitcoin created by Coinbase for the Solana network. Backed 1:1 by actual Bitcoin, cbBTC enables users to effortlessly utilize Bitcoin within Solana’s burgeoning DeFi ecosystem.
According to Coinbase, this move will facilitate easier access to Bitcoin for various decentralized applications (dApps) operating on the Solana blockchain. The token is listed on several Solana DEX platforms and can be utilized on platforms such as Jupiter, Raydium, Drift, and other Solana-based DeFi protocols.
Coinbase's entry into the WBTC on Solana market comes as other forms of wrapped BTC, such as tBTC, zBTC, and WBTC, continue to gain traction. These wrapped assets serve as a bridge, allowing Bitcoin to be used in different blockchain ecosystems. Coinbase's version is expected to compete with BitGo's Wrapped Bitcoin, which currently has a market cap of $11 billion.
Coinbase first introduced cbBTC at the Breakpoint event in September, aiming to make it one of the largest programmable Bitcoin assets in DeFi. As of now, 135 cbBTC tokens, valued at around $10 million, have been deployed to Solana, as indicated by Solscan, the blockchain explorer.
Solana's decentralized finance sector witnessed a remarkable growth throughout 2024. According to DefiLlama, the total value locked (TVL) in Solana's DeFi protocols soared by 250%, reaching $8.25 billion by the end of the year.
This substantial growth marks a recovery for Solana, which faced challenges in previous years, particularly after the collapse of soBTC. The launch of cbBTC is part of Solana's efforts to bolster its DeFi market, and Coinbase's entry is bound to accelerate this endeavor.
Despite Solana's rapid growth, Ethereum still leads the DeFi market, with a TVL of $60 billion in 2024. However, Ethereum's recovery has been slower, with a 72% increase this year, compared to Solana's impressive 250% surge. This rapid growth gives Solana a competitive edge in attracting more users and investors to its DeFi protocols.
As a result of the cbBTC launch, Solana's price has also reacted positively, rising by 3.4% since the announcement. According to CoinGecko, SOL reached $203 during early trading on November 8.
