Bitcoin staking protocol Babylon recently resumed additional BTC deposits and withdrew approximately $1.5 billion worth of its flagship cryptocurrency shortly after launch as investors rushed to stake their coins within an hour and a half. .
According to data shared by the protocol on social media, over 23,000 BTC has been staked since Babylon resumed deposits, and according to the data dashboard, 25,000 stakers currently hold a total of 23,891.6 BTC on the protocol. are.
🎉 Cap 2 completed! 🎉
Today, Babylon has reached an incredible milestone of staking approximately 23,000 Bitcoins on Cap 2.
We would like to express our sincere gratitude to everyone who participated in this journey.
— Babylon (@babylonlabs_io) October 8, 2024
Babylon’s cap was lifted to 10 Bitcoin blocks within an hour and a half, with the only restriction being that users could not stake more than 500 BTC per transaction. This round increases Babylon’s total lock by nearly $1.5 billion and makes Babylon the leader when it comes to the decentralized financial ecosystem associated with Bitcoin, often referred to as BTCFi.
As reported by The Defiant, the protocol itself earns nearly $100,000 in fees from user deposits, and immediately issued a notice to users who deposited BTC above a block height of 864,800 because it was considered an overflow. I was prompted to remove the bind and withdraw the deposit.
Babylon launches proof-of-stake marketplace powered by Bitcoin, adding utility to its flagship cryptocurrency by allowing third-party protocols to utilize Bitcoin for security That’s what I’m aiming for.
It is one of the various Bitcoin Liquid staking protocols that allow BTC holders to earn rewards by staking their coins. Other methods holders use to leverage their BTC holdings and generate rewards include lending strategies and options strategies.
Notably, Bloomberg Intelligence analyst James Seifert suggested that a spot Bitcoin exchange-traded fund (ETF) option could launch in the US in the first quarter of next year.
These options allow Spot BTC ETF holders to, for example, hedge their positions or generate yield from them.
Featured image via Unsplash.
