cbETH coin, or fully named Coinbase Wrapped Staked ETH, is a utility token created and maintained by Coinbase representing Ethereum 2 (ETH2) staked through Coinbase. cbETH is a safe way to earn rewards for staking ETH.
What is cbETH Coin?
cbETH coin is the utility token created by Coinbase and represents ETH2. This token represents 1 staked ETH as well as all accrued staking rewards.
cbETH can be withdrawn from Coinbase and used on-chain with popular DeFi protocols such as Curve Finance, Convex Finance and AAVE to earn extra returns. As for how to maximize the value you get by using CbETH, it is important to follow the details correctly.
How cbETH Works
The first issue to be addressed before exploring how to earn more rewards is the security and risks around cbETH. At its core, cbETH is a representation of Ethereum 2 backed by core ETH2 tokens staked through Coinbase and kept in cold storage. Therefore, it works by using it on-chain with other DeFi protocols.
Additionally, Coinbase has implemented multiple layers of security around ETH2 staking, including additional monitoring and auditing processes. As a result, users can track the on-chain usage of their cbETH tokens with other DeFi protocols.
What is the cbETH Coin Highest Price (ATH)?
Coinbase Wrapped Staked ETH hit the highest $1,951.39 to date. cbETH highest ATH price was recorded on April 5, 2023.
The determination of the market value of crypto assets, whether coin or token, usually takes place through exchanges where that currency is traded in the market. The price of a cryptocurrency is determined when that currency is demanded in the market and is tried to be sold. Therefore, the market value of a coin can change over time and is often affected in parallel by the current state of the markets. All Time High should not be used to develop a trading strategy on its own. But it is one of the tools to consider.
What is the cbETH Lowest Price (ATL)?
The lowest price of cbETH coin i.e. ATL level was recorded on November 9, 2022 as 1,036.96 USD. The price of a coin or token may fluctuate over time, and the price of that currency may drop to a so-called low. This lowest level is called All-Time Low (ATL). By looking at the ATL, you can get an idea of the potential and buying opportunity of a coin.
What Are the Disadvantages of cbETH?
The risks of using cbETH to wrap your staked ETH include potential fluctuations in the value of cbETH compared to staked ETH. If you choose to sell your cbETH when its value is less than the ETH staked, this may result in a loss of cash value. Additionally, while opening cbETH to ETH2 is free and returns both base ETH2 and accrued rewards, unpacked ETH2 and rewards remain locked and inaccessible until a future protocol upgrade.
Apart from that, if you are interested in using a DeFi platform to earn extra rewards, there are smart contract risks associated with these platforms. This means that DeFi contracts used to earn rewards can be subject to exploits that in most cases result in the loss of unrecoverable user funds.
