- Coinbase is launching cbLTC and other wrapped tokens to bring LTC, ADA, DOGE, and XRP into DeFi on Base.
- COIN stock surged after news that it will join the S&P 500 on May 19, replacing Discover Financial.
Coinbase is preparing to release wrapped versions of four major cryptocurrencies, starting with cbLTC, a token backed 1:1 by Litecoin. The move will see Litecoin become part of the DeFi ecosystem on Base, Coinbase’s Ethereum’s Layer-2 network. Soon after, cbLTC, cbADA (Cardano), cbDOGE (Dogecoin), and cbXRP (XRP) will follow.
cbADA, cbDOGE, cbLTC, cbXRP coming soon.
These assets are not yet live or available. We will announce their launch at a later date.
— Coinbase Assets 🛡️ (@CoinbaseAssets) May 13, 2025
When deployed, users will be in a position to utilize cbLTC and its counterparts in DeFi applications on Base. These wrapped tokens are meant to optimize on-chain liquidity and reduce swap fees while expanding new earning opportunities via decentralized lending, staking, and other protocols.
Coinbase has shared the official smart contract addresses ahead of the release to help prevent scams:
- cbADA: 0xcbADA732173e39521CDBE8bf59a6Dc85A9fc7b8c
- cbDOGE: 0xcbD06E5A2B0C65597161de254AA074E489dEb510
- cbLTC: 0xcb17C9Db87B595717C857a08468793f5bAb6445F
Coinbase has also given notice about fraudulent tokens claiming to be cbLTC, cbADA, cbDOGE, and cbXRP. Scammers have started replicating fake versions to decentralized platforms, exploiting the market anticipation. Coinbase confirmed that there are no tokens yet for the time being and posted official contract addresses to help users when the official tokens are launched.
COIN Surges as S&P 500 Inclusion Drives Investor Momentum
Coinbase’s announcement comes at a time of a landmark development. COIN stock is set to enter the S&P 500 Index, replacing Discover Financial Services on May 19. This will be the first-ever pure Crypto company to enter the index, thus increasing its visibility among institutional investors.
Crypto: welcome to the S&P 500! This is a big deal. The S&P 500 is arguably the most tracked & influential index in the world, is a 401(k) cornerstone, and a magnet for institutional capital. It’s a great day for @coinbase – our customers, employees, retail and institutional…
— Emilie Choi 🛡️ (@emiliemc) May 12, 2025
In the wake of the news, COIN jumped by 46% above its 2025 low, up to $258 in pre-market trade. It also hit $225 in after-hours trading, a more than 22% increase daily. The increase follows a recent miss in earnings whereby Q1 revenue declined by 10% to $2 billion.
Still, transaction revenue increased to $ 1.26 billion, and the subscription and services of Coinbase, which involve payments for blockchain reward and stablecoins, turned to $696 million. The company’s fundamentals are still strong, even as it stretches out of spot trading.
Market analysts are keeping a close watch on $297 as the next technical level for COIN. The bullish inverse head-and-shoulders pattern on the daily chart also backs that view, the breakup of the neckline is already confirmed. The stock is also moving above its 100- and 200-day moving averages, supporting the positive signal. However, the Relative Strength Index (RSI) is at 75.26, with signals for a short-term pullback since the asset is overbought.
Massive Deribit Acquisition Could Boost Long-Term Value
Coinbase’s $2.9 billion acquisition of Deribit, one of the leading crypto options platforms, adds to the positive momentum. It is the largest crypto merger ever and may enhance the attractiveness of the platform among institutional traders. Deribit’s derivatives infrastructure sets the exchange up to serve professional investors in a quickly evolving crypto market.
The deal complements the expansion of Coinbase into DeFi and contributes to the bullish outlook of its stock. Although $500 may still not be in sight, analysts agree that increased demand by ETFs and index funds and further price increases in Bitcoin can drive COIN much higher in the near term.
Credit: Source link
