Ethereum Price Explosion Looms – Here’s Why Coinbase’s ‘cbBTC’ Launch Changes Everything
Simon Chandler is a Brighton-based writer and journalist with over ten years of experience writing about crypto, technology, politics and culture. He has written for Cryptonews.com since late 2017,...
The Ethereum price has dropped by 1% today, slipping to $2,347 as the cryptocurrency market loses the same percentage in the last 24 hours.
ETH is now flat in a week and down by 14% in the past month, although it keeps a decent enough 48% increase in the past year.
These may be deflating percentages for some traders, but today also sees the news that Coinbase has officially launched Coinbase Wrapped Bitcoin (cbBTC), an ERC-20 token that Bitcoin holders can use to trade their BTC within the Ethereum DeFi ecosystem.
This could result in a substantial uptick in Ethereum usage over time, something which can only be good for the Ethereum price.
Announcing the launch yesterday (because it would be bad voodoo to unveil it today, on Friday the 13th), Coinbase revealed that cbBTC would have 1:1 backing with the Bitcoin the exchange holds.
cbBTC is onchain.
cbBTC is an ERC20 token that is backed 1:1 by Bitcoin (BTC) held by Coinbase.
This means millions of BTC holders can now securely access DeFi apps on @base and Ethereum ecosystems—with more chains coming soon.
Here’s what you need to know ↓ pic.twitter.com/nF8mF3JGms
The new coin is already available and tradable on multiple DeFi platforms, including Compound, Curve, Maple, Aave, deBridge and Aerodrome, among several others.
This means it already has a big addressable market, and could quickly see significant demand and usage.
This is significant for Ethereum insofar as the ability to use DeFi services – such as lending and yield products – with Bitcoin could bring more traders into the
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