- Joined
- Apr 9, 2024
- Messages
- 2,372
Babylon, a platform enabling native Bitcoin (BTC) staking, recorded a notable unstaking event on April 17. Approximately $1.26 billion worth of BTC was withdrawn from the protocol.
The move resulted in a significant decline in Babylon’s total value locked (TVL). Moreover, the price of its native token, BABY, also dipped.
Blockchain analytics firm Lookonchain alerted users about the unstaking on X (formerly Twitter).
This move triggered a sharp drop in the platform’s TVL. According to data from DefiLama, Babylon’s TVL dropped from $3.9 billion to $2.6 billion in just a day, representing a decline of 32.7%. Moreover, only 31,502 BTC remain staked in the protocol at press time.
That’s not all. The BABY token was also not immune to market pressures. According to BeInCrypto data, the token depreciated by 9.8% over the past day alone. At the time of writing, the altcoin was trading at $0.8.
BABY Price Performance. Source: BeInCrypto
The unstaking led to widespread speculation about the platform’s stability and the broader implications for Bitcoin-based decentralized finance (DeFi) protocols.
Nonetheless, Lombard Finance quickly moved to calm investor concerns. The Bitcoin restaking protocol, built on Babylon, clarified that the withdrawal was part of a planned transition to a new set of finality providers.
The post emphasized that this process was a necessary step in the evolution of the platform. In addition, the company reassured investors that the withdrawn funds are expected to be restaked once the unbonding process concludes.
The unstaking event follows closely on the heels of Babylon’s airdrop earlier this month. 600 million BABY tokens—representing 6% of the token’s total supply—were distributed to early adopters, including Phase 1 stakers, Pioneer Pass NFT holders, and contributing developers.
Shortly after the airdrop, $21 million worth of Bitcoin was unstaked within 24 hours. This suggests a pattern of capital withdrawal that has intensified with the latest event.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source link
The post Babylon’s TVL Drops 32% After Massive Bitcoin Unstaking appeared first on Panther AI.
Continue reading...
The move resulted in a significant decline in Babylon’s total value locked (TVL). Moreover, the price of its native token, BABY, also dipped.
Babylon’s TVL Drops 32% After Massive BTC Unstaking
Blockchain analytics firm Lookonchain alerted users about the unstaking on X (formerly Twitter).
Addresses Unstaking Bitcoin from Babylon. Source: X/Lookonchain
This move triggered a sharp drop in the platform’s TVL. According to data from DefiLama, Babylon’s TVL dropped from $3.9 billion to $2.6 billion in just a day, representing a decline of 32.7%. Moreover, only 31,502 BTC remain staked in the protocol at press time.
That’s not all. The BABY token was also not immune to market pressures. According to BeInCrypto data, the token depreciated by 9.8% over the past day alone. At the time of writing, the altcoin was trading at $0.8.
BABY Price Performance. Source: BeInCrypto
The unstaking led to widespread speculation about the platform’s stability and the broader implications for Bitcoin-based decentralized finance (DeFi) protocols.
Nonetheless, Lombard Finance quickly moved to calm investor concerns. The Bitcoin restaking protocol, built on Babylon, clarified that the withdrawal was part of a planned transition to a new set of finality providers.
The post emphasized that this process was a necessary step in the evolution of the platform. In addition, the company reassured investors that the withdrawn funds are expected to be restaked once the unbonding process concludes.
The unstaking event follows closely on the heels of Babylon’s airdrop earlier this month. 600 million BABY tokens—representing 6% of the token’s total supply—were distributed to early adopters, including Phase 1 stakers, Pioneer Pass NFT holders, and contributing developers.
Shortly after the airdrop, $21 million worth of Bitcoin was unstaked within 24 hours. This suggests a pattern of capital withdrawal that has intensified with the latest event.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Source link
The post Babylon’s TVL Drops 32% After Massive Bitcoin Unstaking appeared first on Panther AI.
Continue reading...