The synthetic BTC landscape has seen a notable shift as of late, with Coinbase’s cbBTC being the fastest-growing synthetic BTC offering on Ethereum.
Synthetic BTC, such as wBTC or cbBTC, are 1:1 BTC-backed tokens issued on other chains that can be used as collateral or liquidity in DeFi, without using the Bitcoin network itself. Since Coinbase first launched cbBTC in September 2024, its supply has grown from 1,000 worth of synthetic bitcoins to over 30,500 cbBTC at the time of writing. Moreover, the cbBTC supply has also increased by over 160% year to date.
Meanwhile, the largest synthetic BTC product on Ethereum, wBTC, has seen its supply decline by 17% since the launch of cbBTC, while also being down 4% year to date.
Interestingly, since cbBTC’s launch in mid-September, the total supply of synthetic BTC on Ethereum has only gone up by ~3%. This indicates that while cbBTC itself has experienced notable growth over the past year, it has been more so a result of a market share shift inside the total synthetic-BTC stack, as opposed to outright net new synthetic BTC moving into Ethereum.
Notably, backlash against WBTC began fomenting in August 2024 after issuer BitGo announced a Justin Sun-related affiliate would be taking a greater role in managing the asset, including signing on as one of the key signatories to the wBTC multisig. Coinbase later delisted wBTC, which opened up a legal challenge that was later dropped.
In other words, a large portion of cbBTC’s growth on Ethereum since its inception has likely been due to substitution and migrational flows away from wBTC. The reason for cbBTC’s growth is likely due to Coinbase being able to funnel BTC holders directly into cbBTC through its existing custody, prime brokerage, and exchange rails. This means fewer hops and lower operational friction than third-party mints, making cbBTC the path of least resistance for institutions and treasuries that already clear through Coinbase.
This is an excerpt from The Block’s Data & Insights newsletter. Dig into the numbers making up the industry’s most thought-provoking trends.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
