Coinbase has just dropped a big announcement that’s got Bitcoin holders excited about DeFi! They’ve launched Coinbase Wrapped BTC (cbBTC), a special token that’s directly linked to Bitcoin.
What is cbBTC?
Think of cbBTC as a “wrapper” for your Bitcoin. It’s an ERC20 token, which means it can be used on Ethereum and other compatible blockchains. This opens up a whole new world of DeFi possibilities for Bitcoin holders.
DeFi for Bitcoin
With cbBTC, you can now:
- Use your Bitcoin on DeFi platforms: Think lending, borrowing, and earning interest on your BTC.
- Trade your Bitcoin on decentralized exchanges:
Access a wider range of trading pairs and liquidity. - Explore new DeFi applications: Like real-world asset protocols, which let you invest in things like real estate.
How it Works
It’s pretty simple:
- Send Bitcoin to Coinbase: It automatically converts to cbBTC.
- Use cbBTC on DeFi platforms: Enjoy the benefits of a more flexible and connected crypto world.
- Receive cbBTC: It converts back to Bitcoin in your Coinbase account.
Bitcoin Price Watch
Bitcoin is currently hovering around $58,302, but it’s facing some resistance. To break through and continue its upward climb, it needs to clear a key level around $58,717. If it can do that, it could potentially reach $61,500.
However, if Bitcoin struggles to break through this resistance, it might consolidate or even pull back. It’s important to keep an eye on how Bitcoin performs in the coming days to get a better idea of its future direction.
