Core CORE/USD, a blockchain platform that aims to unlock Bitcoin BTC/USD-powered decentralized finance (DeFi), has become the largest Bitcoin sidechain in terms of Total Value Locked (TVL), according to data from DeFiLlama.
What Happened: The platform now accounts for 26.4% of the total TVL across all Bitcoin sidechains, with over $300 million in locked assets.
The rise in Core’s TVL comes amid growing interest in its non-custodial Bitcoin staking feature, which allows users to earn yield on their Bitcoin holdings.
As of the latest data, 5,639 bitcoin (worth approximately $335 million at current prices) have been staked on the Core network.
“Users are rapidly adopting BTCfi on the most Bitcoin-aligned blockchain,” Rich Rines, an initial contributor to Core, said.
However, it’s important to note that while the growth in TVL is significant, it represents a small fraction of the overall Bitcoin market cap, which exceeds $1 trillion.
Core’s recent partnerships have likely contributed to its growth.
Earlier this year, the platform collaborated with Valour to launch what they claim is the world’s first yield-bearing Bitcoin Exchange Traded Product (ETP).
Also Read: Bitcoin ETFs See $4.5M Inflow, But Miners Could Actually Cause The Next Big Move Up
Additionally, Core has partnered with digital asset custody provider Copper to support its staking activities.
The platform is preparing to launch LstBTC, a liquid staking token pegged to Bitcoin’s value, which aims to address liquidity challenges in Bitcoin DeFi.
This token will allow users to stake their Bitcoin while still using it within Core’s DeFi ecosystem.
While Core’s growth is noteworthy, it’s essential to consider the broader context of Bitcoin sidechains and the nascent state of Bitcoin-based DeFi.
The total value locked across all Bitcoin sidechains remains a small portion of the overall cryptocurrency market.
As the cryptocurrency industry continues to evolve, platforms like Core are attempting to bridge the gap between Bitcoin’s store of value proposition and the yield-generating potential of DeFi.
What’s Next: For those interested in learning more about the future of Bitcoin-based DeFi and other digital asset innovations, Benzinga’s upcoming Future of Digital Assets event on November 19 may provide valuable insights.
Read Next:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
