As a researcher who has been closely following the cryptocurrency market for the past decade, I must admit that the recent Bitcoin staking event on Babylon was nothing short of spectacular. The sheer magnitude of participation and the rapid surge in transaction fees were truly unprecedented, making it one of the most significant events in the Bitcoin ecosystem to date.
On Thursday, the cost of Bitcoin transactions surged an astounding 120 times to a peak of 60 BTC due to the intense Bitcoin staking activity on the Babylon platform. Yet, the fees returned to their typical levels once again within a few hours after the staking period had concluded.
Babylon Bitcoin Staking Gets Huge Response
“Keeping it Bitcoin, keeps it secure.”
On Thursday, Babylon Labs successfully wrapped up the initial phase of their Bitcoin staking initiative, attracting a massive reaction. Shortly after its debut, the team revealed that they had already reached their staking limit of 1,000 Bitcoins within hours.
Keep in mind that Phase 1 is solely focused on locking Bitcoins without providing any immediate returns to stakers. In the future, however, Babylon will initiate a Proof-of-Stake blockchain to safeguard the Bitcoin locked during Phase 1. Later on, stakers will have the opportunity to earn rewards by utilizing their staked Bitcoins to secure multiple Proof-of-Stake chains simultaneously.
In the recent success, Solv Protocol dominated with the staking of 250 BTC, which was delegated to OKX Earn finality providers. This action strengthens SolvBTC.BBN’s standing as the foremost liquid staking solution for Babylon Labs. Moreover, Solv has agreed to cover all gas fees related to Babylon’s Cap 1 project. In the initial Pase 1 round, a total of 12,710 participants staked, with 20,610 individual delegations.
Babylon Cap-1 Filled!
We’re thrilled to share that we’ve successfully locked in 250 BTC and assigned it to Solv Protocol & OKX Earn finality providers, thereby reinforcing SolvBTC.BBN’s status as the top Liquid Staking Solution for Babylon Labs.
Plus, Solv will cover all gas fees…
— Solv Protocol (@SolvProtocol) August 22, 2024
BTC Transaction Fees Jump
During the Bitcoin staking event on Babylon, Julio Moreno (Research Head at CryptoQuant) noted that transaction fees for Bitcoin skyrocketed from 0.5 BTC to an astonishing 60 BTC per hour. This dramatic increase can be attributed to the massive influx of transactions as users hastened to stake their Bitcoins in the staking protocol, which had a maximum capacity of 1,000 Bitcoins.
For each staking operation, it cost 0.05 Bitcoins, causing a spike in transaction fees due to the rush of participants eager to stake. However, with the conclusion of the staking phase, transaction fees and overall activity have now reverted back to their usual levels.
Total Bitcoin transaction fees spiked today from 0.5 to 60 Bitcoin on an hourly basis.
This was related to transactions looking to stake Bitcoin on @babylonlabs_io staking protocol.
Total staking was capped at 1K Bitcoin so people rushed to stake and paid high fees. Each…
— Julio Moreno (@jjcmoreno) August 22, 2024
1. The increase in Bitcoin transaction fees may have temporarily eased things for miners, but it’s a brief respite. At the same time, the price of Bitcoin remains steady above $60,000 as investors aim for another 10% rise to $66,000. Analysts predict that the Bitcoin market will keep rising, supported by Donald Trump’s endorsement of cryptocurrency.
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2024-08-23 08:32