• Wrapped BTC reached an ATH in activity despite the recent release of Coinbase’s cbBTC.
  • The introduction of cbBTC has led to debates about security, proof of reserves, and blacklisting within the crypto community.
  • WBTC remains dominant in DeFi platforms and exchanges, providing Bitcoin stability.

Wrapped Bitcoin has recorded a surge in activity, reaching an ATH, the rise in activity comes with the release of Coinbase’s new product, cbBTC. This development has brought conversation within the crypto community.

Coinbase’s cbBTC Release Stirs Debate

Coinbase introduction of cbBTC has led to discussions on various topics surrounding wrapped Bitcoin tokens. Among the issues being debated are proof of reserves, audit procedures, and the potential for address blacklisting. 

The debut of cbBTC by Coinbase introduces a new option for users in the maturing crypto space. As the market continues to expand, users are comparing different aspects of wrapped Bitcoin products, including security, transparency, and usability. However, despite the release of cbBTC, WBTC remains a dominant force in terms of user activity and adoption.

While these discussions continue to spread, Wrapped Bitcoin (WBTC) has remained at the fore of the wrapped BTC market, with activity levels exceeding those seen during previous bull markets.

Record Activity for Wrapped BTC

A recent post via the X Space by Cryptoquant indicates that in 2019, WBTC transactions remained relatively low, with minimal activity observed. As BTC prices began increasing in mid-2020, the number of WBTC transactions also shared a sharp rise. 

Wrapped Bitcoin (WBTC) Activity Reaches All-Time High Amid Coinbase Release of cbBTC

"With the release of Coinbase’s own wrapped bitcoin product (cbBTC), there has been a discussion across the crypto community as to which product is best for users.

While many of the topics… pic.twitter.com/Nw8cEL4A38

Read CRYPTONEWSLAND on google news

— CryptoQuant.com (@cryptoquant_com) September 20, 2024

Throughout 2021, WBTC transaction volumes reached peaks during the early months of the year when Bitcoin’s price was at its highest levels. WBTC transaction activity reached over 90,000, matching the surge in Bitcoin price. As Bitcoin’s price dropped in mid-2021, a corresponding dip in WBTC transaction volume occurred.

In 2022, WBTC transactions increased despite a downward movement in Bitcoin’s price. Transaction levels remained active even as Bitcoin’s price dropped below $30,000 in the middle of the year. 

By 2023 and early 2024, WBTC activity saw another surge, with transaction volumes increasing, despite Bitcoin’s price falling. The activity peaks equal to Bitcoin’s price recovering above $45,000 and eventually exceeding $60,000 in early 2024. Over the past week, Wrapped Bitcoin reached an ATH in activity, marking a landmark.

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