Bitcoin Staking Protocol Babylon has seen $1.26 billion in BTC non-stage from the platform. This reduced the total protocol value by 32%.
On April 17, Blockchain Analytics company LookonChain flagged several addresses that have lifted a total of 14,929 Bitcoin (BTC) from its staking platform. The security company has flagged four addresses that unraveled 299 BTC, 499 BTC, 1,000 BTC, and 13,129 BTC.
One address had a majority of $1.1 billion worth of unorganized assets. With the BTC price of around $84,400, the unorganized BTC was worth around $1.26 billion.
In non-staking events, Babylon’s total value locked (TVL) decreased by 32%. According to Data Tracker Defillama, Babylon’s TVL has declined from $3.97 billion since staking to $2.688 billion.
Unorganized Bitcoin may have “betted” on Babylon
Community members are guessing who was behind the staking. One X user suspected that Bitcoin could be part of the Chinese government, while another said the move could simply be spinning, risk-off, or traders in liquidity.
It is unclear who is behind the four addresses cited by LookonChain, but the fund’s move could be related to a transition initiated by the Decentralized Finance (DEFI) protocol Lombard Finance.
At a time of uncertainty, Babylon Lab retweeted an announcement from Lombard, saying it has not staked Bitcoin as part of its transition to a new set of final providers.
Lombard Finance said it will remind users to avoid missing out on the rewards at the end of Babylon’s Phase 1 Cap 1 on April 24th. The protocol said it would regain the assets.
“All of this BTC will return to Babylon as soon as the bonding is complete,” writes Lombard Finance.
Cointelegraph contacted Babylon Lab for comment but did not receive a response from the publication.
Related: Bitcoin L2 “Honeymoon Phase” is over, most projects fail – Muneeb Ali
Bitcoin Unstaking continues with Baby Airdrop
The massive stage event follows Babylon Airdrop for early adopters. On April 3, Babylon announced details about the early adopter airdrop program. Airdrops were assigned to phase 1 stakers, inappropriate tokens (NFT) holders, and developers. The protocol allocated 600 million baby tokens to airdrop events.
Following Airdrop, BTC’s $21 million was not integrated into the protocol. Kevin, co-founder of Bitlayer, previously told Cointelegraph that this was a common short-term market action that represents early redemption.
Babylon is one of the largest Bitcoin debt players in the space, with TVL reaching over $6 billion in December. Babylon co-founder Fisher Yue previously told CoinTelegraph that the platform will allow staking to become a native use case for Bitcoin, eliminating the need to trust other parties while staking.
https://www.youtube.com/watch?v=sumyysrjvzm
magazine: Your ai ‘digital twin’ can take meetings and comfort your loved ones
Disclaimer: Includes third-party opinions. No financial advice.
