Bitcoin protocol Babylon recently completed its second staking round, which saw an increase in deposits to approximately 24,000 BTC, equivalent to $1.5 billion, up from the initial 1,000 BTC. This round was unique as it was “duration-based,” lasting for 10 Bitcoin blocks.
Babylon is a Bitcoin staking platform that aims to provide the original blockchain’s security to new protocols and decentralized applications. The platform’s success in attracting $1.5 billion worth of bitcoin deposits indicates a strong demand for decentralized finance (DeFi) applications built on top of the Bitcoin blockchain, which has traditionally been overshadowed by networks like Ethereum and Solana.
According to Babylon’s staking dashboard, 18,601 BTC had already been staked, with an additional 5,419 BTC pending in the staking queue. The staking round had a cap of 10 Bitcoin blocks, lasting for one hour and 23 minutes. Users were limited to staking up to 500 BTC per transaction during this period.
Unlike the previous staking round in August, which had a fixed cap of 1,000 BTC and filled up in just over an hour, this round allowed for a more flexible duration-based approach. Babylon’s innovative approach aims to enable proof-of-stake chains to access capital from the vast reserves of BTC, introducing utility to the Bitcoin blockchain.
The project gained attention earlier this year after completing a $70 million funding round, following an $18 million round in the previous December. Babylon’s efforts are part of a broader trend of initiatives seeking to bring utility to Bitcoin, a concept that has been more commonly associated with networks like Ethereum.
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In conclusion, Babylon’s successful staking round highlights the growing interest in DeFi applications on the Bitcoin blockchain and the potential for innovative projects to bring new utility to the world’s first blockchain. As the cryptocurrency ecosystem continues to evolve, platforms like Babylon play a crucial role in expanding the possibilities of decentralized finance.