Recent proof-of-reserve data shows that Coinbase Wrapped ADA (cbADA) continues to grow as the exchange doubles down on Cardano.
Cardano-based DEX Mintern shared this in a recent tweet, triggering bullish sentiment within the ADA community. The account noted that the prominent US exchange has republished the proof of reserve for its wrapped Cardano tokens, as numbers sustain its growth trajectory.
Coinbase’s cbADA Proof of Reserve Shows Growth
The recently updated report shows that Coinbase holds a reserve of 9,563,462 ADA valued at $8.2 million at the time of writing. Meanwhile, its total supply of cbADA stands at 9,530,418 tokens, reflecting Coinbase’s 1:1 backing policy.
Notably, the disclosure reveals a significant increase in the cbADA holdings of Cardano. For perspective, Coinbase launched the token in June with an initial supply of 1.7 million cbADA, providing Cardano holders with access to decentralized finance (DeFi) services that were not originally native to the network.
However, Cardano’s cbADA token reserve has grown to 9.56 million, representing a 462% uptick in the past four months. Mintern highlighted that the current figure also shows a 100% uptick in one month. This suggests that the US exchange held over 4.7 million cbADA in September.
Remarkably, wrapped Cardano, which is a Base-native and ERC-20 token, enhances DeFi exposure for ADA holders, allowing them access to protocols like Aave, Uniswap, and Compound. This aligns with Coinbase’s vision to provide non-native token holders with unified DeFi access on Ethereum’s Base.
Institutional Confidence in Cardano?
Mintern suggested that the reserve republishing and growing cbADA tokens suggest institutional interest in Cardano. Remarkably, financial giants are beginning to look beyond Bitcoin to altcoins, and the account believes Coinbase’s interest in ADA indicates a consensus that the token is “about to explode.”
In reality, institutional interest in Cardano is on the rise. ADA is among the tokens that would have a spot exchange-traded fund (ETF) if the US SEC approves a flurry of altcoin ETF filings on its desk. This comes as prominent asset manager Grayscale filed for regulatory nod to offer alternative exposure to ADA on the New York Stock Exchange (NYSE).
Meanwhile, Cardano’s inclusion in the US crypto stockpile also improved its global recognition. An executive order on March included ADA, alongside top assets Ethereum, XRP, and Solana, as the four assets that America would hold as reserve assets.
Interestingly, many believe that growing institutional traction towards Cardano would boost its price considerably. For context, Ssebi shared that ETFs and the liquidity unlocked by Bitcoin DeFi through Cardano will take ADA to $10.
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