Bitcoin: Gas Fees Soar to $140 with Babylon Staking
On August 22, 2024, Babylon marked a significant milestone in the crypto universe by launching its native staking system for Bitcoin. This launch caused a dramatic increase in Bitcoin transaction fees, rising from less than 1 dollar to peaks between 132 and 137 dollars.
Staking Babylon: a launch that increased Bitcoin transaction fees!
Babylon, a Bitcoin staking platform, introduced a self-custody staking system allowing users to lock their BTC via smart contracts. This initiative aims to integrate Bitcoin into a proof-of-stake (PoS) ecosystem, thus offering users the opportunity to earn returns by staking their cryptocurrencies directly on PoS networks. Vitalik Buterin, co-founder of Ethereum, defends PoS against critics, highlighting its advantages over PoW.
The launch of Babylon staking led to a rush of users eager to participate, resulting in a fee bidding war. Consequently, fees reached unprecedented levels, peaking at nearly 140 dollars. This dramatic fee increase was observed within the first hours of the launch, highlighting the enthusiasm and user confidence in this new opportunity.
Babylon’s staking program quickly reached its maximum capacity during the initial lock-up phase, with over 12,700 stakers and 20,610 solo delegates already participating. This rapid adoption demonstrates the growing interest in Bitcoin staking solutions and confidence in Babylon’s potential to redefine Bitcoin’s role in the decentralized finance (DeFi) landscape.
Future perspectives
The success of the Babylon launch comes amidst an increasing institutional support for cryptocurrencies. Babylon raised 70 million dollars in May 2024, following an 18 million dollar funding round in December 2023. This strong funding reinforces Babylon’s position as a potential leader in the evolving Bitcoin ecosystem.
The launch of Babylon staking increased Bitcoin transaction fees and highlighted the interest in staking solutions and integrating Bitcoin into ecosystems. However, the rise of Ethereum staking also attracts investors and only time will tell which of these solutions will dominate the crypto market.
Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.