The Babylon Protocol, the underlying protocol for Bitcoin (BTC), has witnessed a substantial uptick in its Total Value Locked (TVL) due to the recent relaxation of certain staking restrictions.
This adjustment has enabled a larger amount of BTC to be staked, marking a significant milestone for the network.
Moreover, the enhanced staking capabilities signal a further progression in the protocol’s development, solidifying its position among networks with the highest volume of NFT sales.
Increased BTC Lock-in by Bitcoin Protocol
Recent data reveals that the Babylon Protocol, associated with Bitcoin, currently holds close to 24,000 BTC in lock-in, which is valued at nearly $1.5 billion based on the prevailing market rates.
This achievement was unlocked after the protocol eliminated restrictions on new deposits on August 8, enabling users to stake more BTC within a short span.
In just over an hour, thousands of BTC were staked across approximately 10 Bitcoin blocks. The sole limitation was a cap of 500 BTC per transaction, deviating from the initial 1,000 BTC limit set at the protocol’s launch earlier in August.
Furthermore, the removal of the staking cap spurred a rapid expansion in TVL, underscoring the growing interest in leveraging the Bitcoin Protocol for staking activities.
Comparison of Bitcoin Protocol’s Staked Assets with Ethereum
The current staking volume in the Bitcoin Protocol stands at around 24,000 BTC, equivalent to approximately 0.122% of the circulating supply. With Bitcoin commanding a market capitalization exceeding $1.2 trillion and a circulating supply surpassing 19.7 million BTC, this percentage holds significance despite the protocol’s newly integrated staking feature.
However, this figure pales in comparison to Ethereum (ETH). Data sourced from Dune Analytics indicates that almost 35 million ETH is presently staked, constituting more than 28% of the total ETH supply.
Regarding Ethereum, the market capitalization stands at roughly $294 billion with a circulating supply of about 120.4 million ETH, highlighting Ethereum’s dominance in staking participation over Bitcoin.
Notable Growth in NFT Sales Volume
Aside from staking activities, the Bitcoin network has displayed commendable progress in the realm of NFTs, positioning itself among the top five networks in NFT sales volume.
According to data from Crypto Slam, Bitcoin has recorded close to $15 million in NFT sales over the previous week, securing the third position in terms of NFT sales volume behind Ethereum and Mythos.