The number of BTC locked in Defi platforms continues to rise, which is technically a good thing for the price
The price of bitcoin continues to drift sideways but the amount of BTC locked up in Defi projects continues to rise.
As I type we are getting close to 100k BTC locked in Defi...
With the vast majority being locked in WBTC.
The vast majority of this locked bitcoin is now sitting on the Ethereum blockchain, with roughly $900 million worth of BTC now residing there.
For those doing the math that is up 40% already month over month.
Wrapped Bitcoin and renBTC remain the most popular transfer protocols, but Huobi’s HBTC has recently surged as well:
Cool, but what does this all mean?
Well, it means that people holding bitcoin are tired of just HODLing bitcoin.
They are looking to pick up some yield while they hold bitcoin.
Which is likely a good thing for the price of bitcoin going forward.
It seems rather likely that if people are able to earn a decent return from their bitcoin, they probably have less of an incentive to sell it.
I have seen this play out several times with people that I talk to.
People are content locking up their BTC and earning 6% or so and not even worrying about it any longer.
Whereas previously they were trying to flip it and add more BTC to their holdings by trading it on exchanges.
If more and more BTC gets locked up in this regard it removes potential selling pressure and makes it 'easier' for the price to move up.
Plus it also removes the incentive of people to sell their bitcoin to chase the next hot altcoin.
They can stake their btc and still chase high flying coins.
It's pretty much offering the best of both worlds for crypto investors.
The ability to hold digital gold while also participating in the high flying altcoin market.
I suspect that over time this is going to help push the price of bitcoin higher and higher.
When you combine this phenomenon along with all the other things bitcoin and crypto has going for it right now, the next 12-15 months look like they could be a lot of fun for crypto investors.
Stay informed my friends.
Posted Using LeoFinance