On Tuesday the renowned Bitcoin staking protocol Babylon completed a successful second staking round called Cap-2. The Babylon team was confirmed to have pulled in around $1.5 billion worth of Bitcoin in the second staking round.
In this round, the company used a duration-based approach to allow the user to stake 500 BTC per transaction without limiting the number of BTC to be staked. The staking was scheduled to start when the network reached 864,790 and ended at 864,799 and lasted for less than 1 hour and 40 minutes.
Bitcoin Holders Stakes $1.5 Bitcoin on Babylon Staking Round
The success of Cap-2 marked a milestone for enhancing Bitcoin security in new decentralized applications and protocols. The Bitcoin staking protocol has been working to build robust Bitcoin reserves, allowing the user to stake their assets and earn and improve the security of PoS networks.
In the first round, the company pulled in about $62.4 million of Bitcoin in August. At this stage, the users were allowed to stake 1,000 BTC per transaction with over six blocks. This limitation restricted the investors from staking more and only the lucky ones benefited.
From the two staking rounds the company noted that the demand for Bitcoin staking has increased. Also, the company noted that decentralized finance (DeFi) has embraced world’s first blockchain Bitcoin.
Initially, most projects were built on Ethereum and Solana but absent in Bitcoin.
Babylon Protocol Seeks to Improve Bitcoin Utility
In an email statement the co-founder of Babylon David Tse, highlighted the events that took place during Cap-2. The executive described the inflows to be beyond expectation.
He noted that the investor had already staked $18,601 BTC at 20.03 UTC which was nearly 1 hour after the Cap-2 round kicked off.
Source: Babylon Staking dashboard
The event started at 18:30 UTC, providing investors with new staking opportunities for Bitcoin. Shortly after the Cap-2 round started, Tse noted that the Babylon dashboard indicated that 5,419 BTC were on the staking queue.
The massive inflows forced the Bitcoin staking protocol to restrict the user to only stake a maximum of 500 BTC per transaction. The company confirmed that the staking supply of 10 BTC blocks took one hour 23 minutes, assuming that the average block time would be less than 10 minutes.
Compared to the previous staking round, in which the staking supply limit of 1000 Bitcoin lasted for 1 hour and 14 minutes, Tse described Cap-2 as duration-based.
Factors Contributing to the Increase in Bitcoin Demand
Reflecting on the data from the Babylon staking dashboard, Tse noted the growing demand for Bitcoin staking. He described Bitcoin as a friendly and cost-effective network.
At the initial opening of the staking round, Tse explained that the company’s new initiatives aimed at improving Bitcoin’s utility from its traditional use case. He added that the staking rounds aimed at strengthening PoS networks with Bitcoin.
Notably, the Bitcoin staking round started in late May when the company generated $70 million in a funding round aiming at enabling the PoS networks to acquire funding from ‘deep reserves’ stored in the world’s largest crypto by market capitalization.
The Babylon funding round demonstrates Bitcoin user-friendliness and cost-effectiveness. The suitability of Bitcoin has encouraged decentralized apps and new protocols to build on the world’s first blockchain. For more updates on how Babylon will increase Bitcoin utility, follow the TurkishNY Radio on Tumblr, Telegram, and LinkedIn.
