The tokenized Bitcoin landscape is heating up as CBBTC records a massive 160% surge in 2025, positioning itself as a serious challenger to the long-standing leader, Wrapped Bitcoin (WBTC).
WBTC Losing Ground 📉
Since the introduction of CBBTC, WBTC availability has declined by 17%, marking the first significant drop in its dominance over tokenized Bitcoin on Ethereum and other networks. This shift highlights growing demand for alternatives that promise greater transparency, decentralization, and improved liquidity models.
Why CBBTC is Rising 🔥
Improved Transparency: Backed by more verifiable reserves, addressing trust concerns around WBTC’s custodial model.
Growing DeFi Integration: CBBTC is being rapidly integrated across major DeFi protocols, boosting adoption.
User Preference: Traders and institutions are diversifying away from single-token dominance, driving liquidity into newer tokenized BTC products.
What This Means for the Market 🌏
The rise of CBBTC signals a new era of competition in tokenized Bitcoin markets, reducing reliance on WBTC and broadening the ecosystem’s resilience. As more BTC flows into decentralized alternatives, the market could become more diverse, liquid, and competitive — benefiting users across DeFi.
👉 With CBBTC on the rise and WBTC’s grip loosening, 2025 could be the year tokenized Bitcoin finally decentralizes beyond one dominant player.
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