Bitcoin Unstaking Surge Leads To Babylon TVL Evaporating Over 30%

In The Bitcoin Staking Protocol Babylon, A Large Amount Of Funds Were Withdrawn, And The Total Value Locked (TVL) Decreased Significantly. According To Blockchain Analysis Firm Lookonchain On The 17th (Local Time), Babylon's TVL Decreased From About 3.97 Billion To 2.68 Billion Dollars As A Total Of 14,929 Bitcoins Were Unstaked. This Amounts To About 32% Of The Total Assets.

This Capital Outflow Also Raised Speculation In Some Communities About Chinese Government Involvement, But It Appears To Have Coincided With The Transition Of The Defi Protocol Lombard Finance. Lombard Conducted The Unstaking In Accordance With Babylon's 'Stage 1 Cap 1' Ending On April 24, Adjusting The Timing So That Users Would Not Miss Rewards. They Also Stated They Plan To Restake The Bitcoins.

One Of The Unstaking Addresses Disclosed By Lookonchain Held 13,129 BTC, Valued At Approximately 1.1 Billion Dollars By Itself. The Total Value Of Unstaked Bitcoins Reached About 1.26 Billion Dollars Based On The Market Price At The Time. Some Analysts Suggest This Fund Movement Could Be A Simple Rebalancing, Risk Hedging, Or A Response To Liquidation.

This Major Unstaking Happened Shortly After Babylon Airdropped 600 Million BABY Tokens To Early Participants. This Airdrop Was Announced On April 3rd For Early Stakers, NFT Holders, And Developers. Subsequently, Babylon Announced That About 21 Million Dollars Worth Of BTC Was Unstaked.

The Market Predominantly Views This Phenomenon As A Short-Term Adjustment. In Fact, As Of December Last Year, Babylon's TVL Surpassed 6 Billion Dollars, Emerging As The Largest Bitcoin-Based Defi Project. Co-Founder Fisher Yoo Emphasized That Babylon's Core Goal Is To Create An Environment Where Bitcoin Can Be Staked Directly Without Third-Party Trust.

This Unstaking, Due To A Combination Of Realizing Gains After The Airdrop, Technical Adjustments From System Transition, And Risk Management By Institutions Or Whale Investors, Is Also Evaluated As A Typical Pattern That Can Occur In The Maturing Process Of The Bitcoin Defi Market.