Galaxy Digital appears to be bullish on Bitcoin and Ethereum, according to the latest data. The blockchain firm has recently invested heavily in Bitcoin and Ethereum positions amid continued price gains.
Galaxy Digital deposited 4,168 WBTC (worth $142 million) and 16,000 ETH (worth $28.6 million) into Aave and Compound, Lookonchain said, citing data from DeFi portfolio tracker DeBank.
Galaxy Digital injects huge deposits into DeFi protocol
Galaxy Digital has always been a supporter of Bitcoin. Now, the company has taken a step towards the long-term future of Bitcoin and Ethereum.
Specifically, the company deposited a total of $170 million worth of Wrapped Bitcoin and Ethereum into decentralized protocols Aave and Compound as collateral to borrow $71.6 million in stablecoins USDT and $21.9 million in stablecoins USDC.
The level of interest in DeFi protocols for investing in cryptocurrencies is a shadow of what it was at the peak of the DeFi craze in 2021. For example, data from DeFi aggregator DeFiLlama shows that the current total locked value (TVL) of the Aave protocol is $5.432 billion.
This is down 72% from the peak of $19.442 billion in October 2021. However, Galaxy Digital’s DeFi route of going long on Bitcoin and Ethereum signals a possible return of confidence in DeFi protocols.
Why Galaxy Digital is long Bitcoin and Ethereum
Galaxy Digital predicted an upcoming Bitcoin bull run in its recent report. The company said that spot Bitcoin ETFs are a better way for traditional investors to enter the cryptocurrency industry compared to current market products.
These ETFs could attract billions of dollars into Bitcoin, reaching inflows of over $14.4 billion in the first year of approval. With its recent investment moves, Galaxy Digital is well-positioned to benefit from Bitcoin inflows.
The firm’s CEO, Mike Novogratz, is also convinced that a bitcoin bull run is imminent. Even before BlackRock and other investment firms filed for electronic transfers of spot bitcoin, Novogratz pointed to growing adoption in Asia as a potential catalyst for a bitcoin bull run.
As of this writing, Bitcoin is trading at $34,194 and is on track to gain a foothold above $35,000. Ethereum has seen less price growth than Bitcoin over the past week and is currently trading at $1,786.
On the other hand, both AAVE and COMP reacted to Galaxy Digital going long on Bitcoin and Ethereum on DeFi protocols. These tokens also gained 7.78% and 9.50% respectively in 7 days. #GalaxyDigital #比特币