As a seasoned crypto investor with a keen eye for promising projects and a knack for spotting untapped potential, I find the recent funding round by Solv Protocol to be an exciting development in the Bitcoin ecosystem. With my extensive experience in the market, I have witnessed firsthand the rapid growth of DeFi and the transformative power it holds for traditional finance.
Solv Protocol, supported by Binance Labs, successfully concluded a $11 million fundraising round aimed at making Bitcoin staking accessible to a broader range of investors.
The investment round, featuring notable venture capitalists like Nomura’s Laser Digital and Blockchain Capital, has increased the total funding for the Bitcoin (BTC) staking platform to a substantial $25 million. Additionally, gumi Cryptos Capital, OKX Ventures, and CMT Digital also took part in this funding round.
According to the statement made by Solv Protocol on October 14, the latest fundraising event was estimated to be worth $200 million.
Bitcoin’s growing DeFi market
Solv Protocol intends to utilize the incoming funds to boost the widespread use of Bitcoin staking via the Staking Abstraction Layer (SAL). By employing SAL, Bitcoin owners can deposit their coins across multiple protocols and chains, allowing them to take advantage of diverse staking possibilities within the rapidly expanding decentralized finance sector.
Although Bitcoin staking has grown with services like Solv Protocol and Babylon entering the scene, the market for Bitcoin staking still trails significantly behind that of Ethereum (ETH). The stronghold of Ethereum in the staking ecosystem is largely attributed to the widespread popularity of Lido and EigenLayer, alongside other platforms.
On the other hand, Solv Protocol aims to generate fresh energy by offering Bitcoin staking possibilities for those who own this leading digital currency, whose current market capitalization exceeds $1.3 trillion.
Right now, the staking rate for Bitcoin is significantly lower compared to Ethereum’s 28%. If we can stimulate a similar level of engagement, it could potentially release a staggering $330 billion in value within the Bitcoin ecosystem. We anticipate that BTCFi will spearhead the next phase of groundbreaking advancements in the blockchain sector.
Ryan Chow, co-founder and chief executive officer of Solv Protocol
At the moment, SolvBTC has amassed approximately 20,000 Bitcoins, equating to a grand total of over $1.3 billion in value that’s been locked up. This significant amount is being staked across ten distinct blockchain networks, as stated in the official announcement from Solv Protocol.
In September, Solv Protocol expanded its Bitcoin staking service to Base, the Ethereum layer-2 chain launched by Coinbase. The platform offered Base users the chance to participate in Bitcoin DeFi via the wrapped token cbBTC, which Coinbase unveiled that month.
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2024-10-14 18:39