Bitcoin shares continue to gain traction in the cryptocurrency space, with users contributing more than $1.42 billion in BTC to Babylon in just under two hours.
On October 8, Bitcoin stock platform Babylon reopened deposits for the second time, allowing users to deposit up to 500 BTC per transaction for a period of 10 Bitcoin blocks.
During this short period, approximately 12,570 participants contributed 22,891 BTC, bringing Babylon’s total block value (TVL) to an impressive $1.42 billion. With each block of Bitcoin mined in about 10 minutes, this influx occurred in less than two hours.
Babylon collected 1.56 BTC in fees from these deposits, or almost $97,000. “Today marks an incredible success for Babylon: almost 23,000 bitcoins placed in Cap-2!” said the platform, expressing its gratitude to its community of participants. Any BTC deposited after the block height of 864,800 was classified as overflow. Babylon advised users to unlock and withdraw any excess BTC deposited into the protocol.
This increase in deposits comes after the main release of Babylon on August 22. During the initial phase, the protocol limit of 1,000 BTC was reached in just three and a half hours, with individual deposit limits set at 0.05 BTC per transaction.
While the launch of Babylon caused Bitcoin fees to increase by more than 900% as users rushed to deposit their BTC, the second deposit window had a more modest effect on Bitcoin fees. According to YCharts, average prices increased by 76%, from $0.83 on October 7 to $1.46.
Development Plan of Babylon
Babylon aims to create a marketplace and consensus layer powered by Bitcoin’s Proof of Stake (PoS), offering third-party protocols with enhanced security. At the beginning of the launch of Babylon, users can earn points by locking their BTC. After the second round of deposits, Babylon increased the distribution of points from 3,125 to 10,000 points per Bitcoin block.
The next step on Babylon’s path is to activate the consensus mechanism and launch the Babylon PoS chain. Ultimately, it will evolve into a market that provides shared security backed by BTC, which can use PoS networks and protocols. Once fully operational, users will be able to stake their BTC to help secure multiple PoS systems and earn rewards from different protocols.
Staking Liquid Bitcoin
Babylon is also promoting the expansion of Bitcoin Liquid Staking (LST) protocols that use its platform.
Before the second round of Babylon deposits, Binance allowed users to pre-deposit BTC through various Bitcoin LST protocols, including Bedrock, Solv, Lorenzo, PumpBTC, PSTAKE Finance, and Chakra. Binance’s early deposit campaign ended on October 6..
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