Coinbase Wrapped ZEC Tokenomics Show Promise but Risks Remain

Coinbase Wrapped ZEC (CBZEC) is a token on the Base network that represents Zcash (ZEC) held by Coinbase. Each cbZEC is backed 1:1 by ZEC in Coinbase custody, allowing users to use ZEC in DeFi apps on Base.

The total supply of CBZEC tokens is $604.64 million, with a circulating supply also at $604.64 million. The FDV (Fully Diluted Valuation) is $587.99K, indicating a potential overvaluation signal if the current market cap is considered.

According to tokenomics metrics, high circulating supply can lead to greater liquidity, while limited max supply and low inflation rate can result in long-term price appreciation. Transparent token distribution also contributes to trust in the project and lower risk of centralized control.