Coinbase Introduces cbBTC on Solana Network

Coinbase has launched a “wrapped” bitcoin on the Solana network—cbBTC. The SPL token is backed by digital gold at a 1:1 ratio, stored on the exchange.

cbBTC is live on @solana.

cbBTC is an SPL token that is backed 1:1 by Bitcoin (BTC) held in custody by Coinbase.

This is the first token Coinbase has issued on Solana, and with it, we’re excited to bring easy access to BTC.

Here’s what you can do with your cbBTC on day one ↓

— Coinbase ?️ (@coinbase) November 7, 2024

Several DeFi projects, including Jupiter, Raydium, Orca, Jito, and others, have added support for the asset. At the time of writing, cbBTC worth $10 million has been issued, according to on-chain data.

In September, Coinbase introduced its own version of bitcoin as an ERC-20 token. The company later announced plans to launch the instrument on the Solana network.

The total TVL of the decentralized application ecosystem based on Solana has more than tripled since the beginning of the year, reaching $6.6 billion.

On November 8, SOL exceeded the $200 mark for the first time since April.

The asset’s all-time high was recorded near $260 in November 2021.

Coinbase Premium

For the first time in weeks, the bitcoin premium on Coinbase turned positive, signaling renewed demand among American investors. This was noted by CryptoQuant’s head of research, Julio Moreno.

“[Donald] Trump’s victory [in the US elections] has brought back American investors’ demand for bitcoin, and the Coinbase premium has turned positive for the first time since October,” he said.

The bitcoin premium on Coinbase is the positive difference between the cryptocurrency’s price on the American platform compared to others. It indicates increased demand for digital gold among Americans, including institutional investors using the platform.

Futures Trading Volume

The growing demand for bitcoin among institutional investors is confirmed by increased trading activity on the CME—on November 6, trading volume reached a record $13.35 billion. The average daily value is $4.56 billion, which is higher than before the FTX collapse in early November 2022, noted K33’s head of research, Vetle Lunde.

“Throughout 2024, trading activity on CME has consistently outpaced offshore exchanges. The trend indicates increased interest from institutional investors who rely on regulated platforms like CME for greater security and compliance,” Lunde noted.

On November 10, 2023, open interest on CME surpassed Binance and has maintained its lead since then.

Options

Open interest in the options market also experienced a surge, reaching $25.2 billion. The figure approached the March peak of $30.2 billion, according to Glassnode data.

Options trading volume rose to $2.9 billion.

“This once again underscores the growing presence of institutional investors using sophisticated instruments to express their market views,” analysts noted.

JPMorgan has confirmed a forecast for bitcoin growth thanks to Trump and MicroStrategy.