From Nasdaq
September 17, 2024 05:30:00 AM:

Bitcoin, the world’s most valuable cryptocurrency, lacks smart contract capabilities, restricting participation in DeFi. However, Coinbase’s cbBTC token aims to unlock Bitcoin’s potential by allowing users to interact with the DeFi economy using their Bitcoin assets. This innovation could drive Bitcoin’s value higher and expand its utility.

cbBTC is a wrapped version of Bitcoin that exists on Ethereum and Base networks, enabling seamless conversion between BTC and cbBTC. Unlike previous attempts at DeFi-capable Bitcoin, cbBTC offers a user-friendly process, allowing mainstream users to access DeFi markets easily. This accessibility could lead to a significant inflow of Bitcoin into DeFi, potentially boosting its value.

Introducing cbBTC could unlock Bitcoin’s economic utility, enabling users to engage in DeFi activities like lending, borrowing, and yield farming. By expanding Bitcoin’s role beyond a store of value, its market cap could potentially increase by hundreds of billions of dollars, similar to Ethereum’s success in DeFi. This innovation signals a shift towards Bitcoin’s integration into the DeFi ecosystem and its growing long-term value proposition.

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Read more at Nasdaq.: How Coinbase’s Newest Innovation Could Boost Bitcoin’s Long-Term Value by Billions