{"id":127375,"date":"2025-04-17T11:15:30","date_gmt":"2025-04-17T11:15:30","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=127375"},"modified":"2025-04-17T11:15:30","modified_gmt":"2025-04-17T11:15:30","slug":"babylon-total-value-locked-drops-32-as-wallets-unstake-1-2b-in-bitcoin","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=127375","title":{"rendered":"Babylon total value locked drops 32% as wallets unstake $1.2B in Bitcoin"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin staking protocol Babylon saw $1.26 billion in BTC unstaked from its platform, reducing the protocol\u2019s total value locked by 32%.\u00a0<br \/>\nOn April 17, blockchain analytics firm Lookonchain flagged several addresses that had unstaked a total of 14,929 Bitcoin (BTC) from the staking platform. The security firm flagged four addresses that had unstaked 299 BTC, 499 BTC, 1,000 BTC and 13,129 BTC.\u00a0<br \/>\nOne address held a majority of the unstaked assets worth $1.1 billion. With BTC prices hovering at around $84,400, the total unstaked BTC was worth about $1.26 billion.<br \/>\nThe unstaking event saw Babylon\u2019s total value locked (TVL) drop by 32%. According to data tracker DefiLlama, Babylon\u2019s TVL declined from $3.97 billion to $2.68 billion after the unstaking.<br \/>\nSource: LookonchainUnstaked Bitcoin may be \u201cstaked back\u201d to Babylon\u00a0<br \/>\nCommunity members are speculating on who was behind the unstaking. One X user suspected that the Bitcoin may belong to the Chinese government, while another said the move may simply be a rotation, risk-off, or a trader getting liquid.<br \/>\nWhile it\u2019s unclear who\u2019s behind the four addresses cited by Lookonchain, the fund movements could be related to a transition initiated by the decentralized finance (DeFi) protocol Lombard Finance.\u00a0<br \/>\nAt the time of the unstaking, Babylon Labs retweeted an announcement from Lombard, saying it was unstaking Bitcoin as part of a transition to a new set of finality providers.\u00a0<br \/>\nLombard Finance said it timed the unstaking with the end of Babylon\u2019s phase 1 cap 1 on April 24 so users would not miss out on rewards. The protocol said it would stake the assets back.<br \/>\n\u201cAll of this BTC will be staked back into Babylon as soon as the unbonding is complete,\u201d Lombard Finance wrote.\u00a0<br \/>\nCointelegraph reached out to Babylon Labs for comments but did not get a response by publication.<br \/>\nRelated: Bitcoin L2 \u2019honeymoon phase\u2019 is over, most projects will fail \u2014 Muneeb Ali<br \/>\nBitcoin unstaking follows BABY airdrop<br \/>\nThe massive unstaking event follows a Babylon airdrop for early adopters. On April 3, Babylon announced the details of its early adopters airdrop program. The airdrop was allocated for its Phase 1 stakers, non-fungible token (NFT) holders and developers. The protocol allocated 600 million BABY tokens for the airdrop event.\u00a0<br \/>\nFollowing the airdrop, $21 million in BTC was unstaked from the protocol. Bitlayer co-founder Kevin He previously told Cointelegraph that this was a common short-term market behavior representing early redemption.\u00a0\u00a0<br \/>\nBabylon is one of the largest Bitcoin DeFi players in the space, with a TVL reaching over $6 billion in December. Babylon co-founder Fisher Yu previously told Cointelegraph that the platform allows staking to be a native use case for Bitcoin, eliminating the need to trust another party while staking.\u00a0<br \/>\nMagazine: Your AI \u2018digital twin\u2019 can take meetings and comfort your loved ones<a href=\"https:\/\/cointelegraph.com\/news\/babylon-unstaking-1-billion-tvl-drops-30-percent?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin staking protocol Babylon saw $1.26 billion in BTC unstaked from its platform, reducing the protocol\u2019s total value locked by 32%.\u00a0 On April 17, blockchain analytics firm Lookonchain&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127375"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=127375"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/127375\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=127375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=127375"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=127375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}