📝 Editor’s Note:
While Bitcoin's core protocol remains relatively static and unchanged, systems to extend the asset's capabilities have grown and changed immensely.
Case in point — users have wrapped over 364,878 BTC, worth over $38B dollars, into bridgeable assets, according to the data provider Bitcoin Layers. This is a major change from BTC's early years, as it's clear there's demand from traders and investors to generate yield with the token on other networks, as opposed to just holding it.
We'll hear more on the growth of BTC's broader ecosystem below thanks to contributions from Kairos Research, Seoul Data Labs, Daedalus Angels, and Aptos.
– ON Editorial Team
Bitcoin Ecosystem 🟠
Lombard | cbBTC | BoB | BTCfi on Aptos
Lombard 🏦
👥 Ian Unsworth | Website | Dashboard
📈 With Bitcoin Recently Surassing Its Previous All-Time High, Lombard Saw a New All-Time High in TVL, Eclipsing $2B
Lombard provides users with a way to turn their otherwise idle BTC into LBTC, a yield-generating asset. There has been a notable drop off in LBTC-denominated TVL units, primarily driven by the end of the BOYCO incentive program, a large part of which was facilitated via ether.fi vaults. However, the amount of LBTC on Aave has continued to climb higher. This is a noticable trend we see amongst other analgous products like liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) for ETH, where the majority of the supply is on lending markets. Aave is now leading its peers with a 32% of the marketshare for LBTC utilized in DeFi.
While the overwhelming majority of LBTC is used on Ethereum, its important to look elsewhere too. While Berachain had a large dropoff, other chains like Sui have seen a steady and continued inflow. The amount of LBTC on Base has also shown steadiness over the last several months.
