The Babylon, the underlying protocol of Bitcoin [BTC], has witnessed a notable surge in its Total Value Locked (TVL) following the relaxation of specific staking limitations.
This adjustment has paved the way for more BTC to be staked, thereby achieving a new milestone within the network.
Moreover, the broadened staking functionality signals a significant advancement in the protocol’s evolution, positioning it among the networks with the highest NFT sales volume.
Increased Lockup of BTC in the Bitcoin Protocol
Recent data reveals that the Babylon protocol, driving Bitcoin, presently boasts a TVL of around 24,000 BTC, equal to nearly $1.5 billion based on the current market valuation.
Additionally, this milestone was crossed subsequent to the protocol’s lifting of the ceiling on fresh deposits on August 8th, enabling users to stake more BTC.
In just over an hour, thousands of BTC were staked across approximately 10 Bitcoin blocks, with the only stipulation being a maximum of 500 BTC per transaction – a deviation from the initial 1,000 BTC cap during the protocol’s launch earlier in August.
Furthermore, the removal of the staking limit ignited rapid growth in the TVL, underscoring the mounting interest in leveraging the Bitcoin Protocol for staking activities.
Comparative Analysis of Staked Assets in the Bitcoin Protocol vis-à-vis Ethereum
At present, roughly 24,000 BTC—translating to approximately 0.122% of the circulating BTC supply—is staked in the Bitcoin Protocol. With a market cap surpassing $1.2 trillion and a circulating supply exceeding 19.7 million BTC.
Although this proportion is remarkable given the protocol’s relatively recent incorporation of staking mechanisms, it stands in marked contrast to Ethereum [ETH].
Data sourced from Dune Analytics indicates that nearly 35 million ETH is currently staked, representing over 28% of the overall ETH supply.
It’s worth noting that Ethereum boasts a market cap of around $294 billion and a circulating supply of approximately 120.4 million ETH. Consequently, Ethereum’s stake involvement significantly outstrips that of Bitcoin’s.
Uptick in NFT Sales Volume on the Bitcoin Network
In tandem with the staking developments, the Bitcoin network is also witnessing growth in the realm of NFTs. The network now ranks within the top five networks in terms of NFT sales volume.
According to Crypto Slam, Bitcoin recently registered nearly $15 million in NFT sales in the past week, positioning it as the third-highest network for NFT sales, trailing behind Ethereum and Mythos.