Babylon’s Bitcoin Staking Mainnet Launch Triggers Massive Surge In Transaction Fees

Babylon has officially launched its Bitcoin staking mainnet, and the response has been nothing short of extraordinary.

The network saw a significant spike in activity, leading to Bitcoin transaction fees soaring by 120x, reaching a staggering 60 BTC, all due to the rush to participate in Babylon’s staking event.

In its initial phase, Babylon set a staking cap of 1,000 BTC, a limit that was swiftly reached within just a few hours. The frenzy was driven by the requirement of 0.05 BTC per stake, which, combined with the heightened activity, caused transaction fees to skyrocket. However, since the cap was reached, both fees and network activity have returned to normal levels.

The success of this staking event underscores the dominance of Solv Protocol, which managed to secure 250 BTC, even covering the associated gas fees. In total, 53.4 BTC, roughly equivalent to $3.2 million, was spent on transaction fees, with the staking process wrapping up in just six blocks through 21,000 staking transactions.

Traders Eye $66K As Bitcoin’s New Potential Level

Bitcoin, meanwhile, continues to hold strong above the $60,000 mark, with the market sentiment remaining bullish. Enthusiasts are eyeing a new potential high of $66,000, spurred on by recent positive news, including support from former President Donald Trump.

Babylon’s inaugural staking phase concluded rapidly, showcasing the impressive stats:

  • 1,000 BTC Cap hit within 6 blocks
  • 12.72k participants
  • 20.61k stake delegations

Prominent finality providers who staked over 1 BTC include @rockx_official with 287.82 BTC, @SolvProtocol with 150.32 BTC, and @LorenzoProtocol with 129.37 BTC, among others. For a full list of finality providers, you can check Babylon’s official staking page.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Source: https://nulltx.com/babylons-bitcoin-staking-mainnet-launch-triggers-massive-surge-in-transaction-fees/