The general digital asset markets seem to be struggling, including prominent virtual currencies like BTC, ETH, and many others. Despite these ongoing market corrections, crypto analyst Onchain Lens shared data today on the X platform identifying that a whale has accumulated massive amounts of cbBTC tokens.
Whale buys $5 million worth of cbBTC
According to data from Onchain Lens, a wallet associated with Andreas Brekken, the founder of Sideshift.ai, withdrew $5 million in USDC from Hyperliquid. After the withdrawal, the whale spent $2 million to purchase 21.11 cbBTC tokens at an average price of $94.72.
Data shows that the trader set the purchasing into an auto-buy mode, buying cbBTC every 36 minutes. His wallet still possesses $3 million USDC, which shall be used to buy more cbBTC.
This incredible accumulation occurs when cbBTC has been down 2.3% in the last seven days. The token is currently trading at $94,829.30, down 1.5% in the last 24 hours. The acquisition signals that whales and savvy traders are capitalizing on the market dip to purchase more cbBTC tokens.
Data according to IntoTheBlock, cbBTC price market conditions indicate a bearish trend with a decline in large transactions. The ongoing bearish moment is due to several whales strategically reducing their holdings as part of profit-taking a few days ago.
However, regardless of such offloading, cbBTC market activities indicate the resilience of the new coin launched just four months ago. Its latest all-high time price was $107,711.98 while the lowest value ever reached was $57,559.21. The latest renewed whales’ buying spree reflects optimism as the coin maneuvers the downturn trend.
cbBTC unlocking Bitcoin’s role in DeFi
Coinbase launched cbBTC, a tokenized version of Bitcoin, on Ethereum and Base blockchains on September 12. The token’s reaching a market valuation of $100 million a day after its rollout signified increased user demands.
While Bitcoin has been the significant winner based on this development, Ethereum and Base became great beneficiaries. Coinbase launched the product on top of Ethereum and Base DeFi blockchains. The tokenization of Bitcoin on these blockchains reflects the technological accomplishments, superior performance, and reliability of these protocols.
The launch of cbBTC turned out to be a wonderful instrument for Bitcoin holders who increasingly use it to access DeFi assets and earn extra income in the Web3 ecosystem. Bitcoin users can now change their BTC to cbBTC, enabling them to participate in DeFi activities like collateralizing, borrowing, and lending assets.
The coin maintains a 1:1 ratio with BTC, making sure that each cbBTC is supported by the same amount quantity of Bitcoin. This smooth transformation enables Bitcoin users to seamlessly engage with assets within DeFi markets without the need to sell their BTC holdings.
Bitcoin has been functioning as a store of value. However, its applications have been limited due to the lack of smart contract applicability. Bitcoin users can now utilize their BTC coins similar to the way Ether users do theirs in the DeFi ecosystem.
