Whale Accumulates $5 Million Worth of cbBTC Tokens as Market Corrects

The general digital asset markets seem to be struggling, including prominent virtual currencies like BTC, ETH, and many others. Despite these ongoing

A prominent virtual currency, cbBTC, has been struggling together with other digital assets in the broader market. But, despite these ongoing market corrections, a whale has been observed accumulating massive quantities of cbBTC tokens, as per data shared today by crypto analyst Onchain Lens on the X platform.

Whale acquires cbBTC tokens worth $5 million

Data from Onchain Lens reveals that a wallet linked to Andreas Brekken, the founder of Sideshift.ai, withdrew $5 million in USDC from Hyperliquid. Following the withdrawal, the whale spent $2 million to purchase 21.11 cbBTC tokens at an average price of $94.72.

The trader set the purchasing into an auto-buy mode, buying cbBTC every 36 minutes, the data shows. His wallet still has $3 million USDC, which will be used to buy more cbBTC.

A wallet connected to Andreas Brekken (@abrkn), Founder of @sideshiftai, withdrew $5M $USDC from #Hyperliquid and spent $2M $USDC to buy 21.11 $cbBTC at an average price of $94,729.Andreas has set it to auto-buy mode, purchasing $cbBTC every 36 minutes. The wallet still holds $3M… pic.twitter.com/VNehPZqdig

This incredible accumulation comes as cbBTC has seen a 2.3% decrease in the last seven days. At the moment, the token is trading at $94,829.30, showing a 1.5% decline in the last 24 hours. The acquisition signals that whales and experienced traders are capitalizing on the market dip to increase their cbBTC token holdings.

Data from IntoTheBlock shows that cbBTC price market conditions indicate a bearish trend with a decline in large transactions. The ongoing bearish moment is due to several whales strategically reducing their holdings as part of profit-taking a few days ago.

However, despite such offloading, cbBTC market activities indicate the resilience of the new coin launched just four months ago. Its latest all-high time price was $107,711.98 while the lowest value ever reached was $57,559.21. The latest renewed whales’ buying spree reflects optimism as the coin maneuvers the downturn trend.

cbBTC unlocking Bitcoin’s role in DeFi

Coinbase launched cbBTC, a tokenized version of Bitcoin, on Ethereum and Base blockchains on September 12. The token reached a market valuation of $100 million a day after its rollout, signaling increased user demands.

While Bitcoin has been the significant gainer from this development, Ethereum and Base also became large beneficiaries. Coinbase launched the product on top of Ethereum and Base DeFi blockchains. The tokenization of Bitcoin on these blockchains reflects the technological accomplishments, superior performance, and reliability of these protocols.

The launch of cbBTC turned out to be a useful instrument for Bitcoin holders who increasingly use it to access DeFi assets and earn extra income in the Web3 ecosystem. Bitcoin users can now change their BTC to cbBTC, enabling them to participate in DeFi activities like collateralizing, borrowing, and lending assets.

The coin maintains a 1:1 ratio with BTC, ensuring that each cbBTC is backed by the same amount quantity of Bitcoin. This smooth transformation enables Bitcoin users to seamlessly engage with assets within DeFi markets without needing to sell their BTC holdings.

Bitcoin has been functioning as a store of value. However, its applications have been limited due to the lack of smart contract applicability. Bitcoin users can now utilize their BTC coins similar to the way Ether users do theirs in the DeFi ecosystem.