Bitcoin staking, a concept that might have seemed unusual in the past, is quickly gaining traction as a new way to earn yield on BTC holdings.
Through Bitcoin staking, users deposit BTC into a protocol and receive Liquid Staking Tokens (LSTs) in return. While the BTC remains locked, the LSTs can be used in DeFi markets, allowing users to earn rewards while maintaining liquidity.
The Bitcoin staking market is expanding at a rapid pace. A prime example is Lombard Finance’s LBTC, which recently surpassed a $300 million market cap, showcasing its increasing popularity.
Although the number of holders is still relatively low, the growth has been substantial, with LBTC leading the pack at over 3,300 holders. UNIBTC is also gaining momentum, nearing the 1,000-holder mark.
Despite this rapid expansion, there remains significant growth potential. Currently, staked BTC tokens represent just 3.75% of all wrapped Bitcoin, leaving plenty of room for further growth if yield opportunities continue to be attractive.
In the broader Bitcoin market, technical indicators suggest bullish momentum. The Relative Strength Index (RSI) has broken through a key resistance level, signaling a potential breakout.
However, Bitcoin still needs to reclaim the 200-day moving average as support to confirm the continuation of the bull run. Historically, failure to do so—such as in 2014, 2018, and 2020—has led to significant market corrections.
Meanwhile, miner wallets that had been dormant for over 15 years have suddenly become active, with 250 BTC ($15.9 million) moved in the last hour. Additionally, MicroStrategy has increased its Bitcoin holdings to 252,220 BTC, now worth $15.85 billion. The company has seen a profit of approximately $5.95 billion based on current prices.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: balage941/123RF // Image Effects by Colorcinch
The Q3 season is nearing an end, and investors look gung-ho about the last quarter…
Bitcoin has outperformed stocks since post US Fed Rate cut to 50 basis points. But…
FED rate cuts became all the buzz in the crypto space, with investors and analysts…
Memecoins on the Solana blockchain saw notable gains on Thursday following the Federal Reserve's interest…
At around 4 AM on September 20 (Singapore time), BingX's technical team detected unusual network…
Meme tokens have gained immense popularity, but their tokenomics often involve more complexity than meets…