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.
1/ Bitcoin staking might sound unusual, but it could become the next big thing for earning yield on your BTC.
Hereâs what you should know𧔠pic.twitter.com/eKNxYHmFx5
â IntoTheBlock (@intotheblock) September 20, 2024
The Bitcoin staking market is expanding at a rapid pace. A prime example is Lombard Financeâs 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.
Bitcoin May See A Potential Bullish SurgeÂ
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.
On the #Bitcoin daily chart, the RSI has broken through a key resistance trendline, signaling a bullish breakout!
However, $BTC still needs to reclaim the 200-day moving average as support to confirm the continuation of the bull run. pic.twitter.com/d6n6j6jH0l
â Ali (@ali_charts) September 19, 2024
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 soâsuch as in 2014, 2018, and 2020âhas led to significant market corrections.
#Bitcoin is once again testing the 200-day SMA, a critical level for confirming the bull run.
Historically, failures to reclaim this support, as seen in 2020, 2018, and 2014, led to significant corrections. Watch closelyârejection here could signal trouble for $BTC! pic.twitter.com/WWJgSHSvCd
â Ali (@ali_charts) September 20, 2024
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.
MicroStrategy bought another 7,420 $BTC($458.2M) at $61,750 in just 6 days!#MicroStrategy currently holds 252,220 $BTC($15.85B), and the average buying price is $39,266.
At current prices, the profit is ~$5.95B!https://t.co/Z64jAettCK pic.twitter.com/L0mAKOE19y
â Lookonchain (@lookonchain) September 20, 2024
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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