Blockchain data analytics platforms and industry reports

Bitcoin Enters Restaking Space with Babylon Labs Leading, Fees Spike 100x, EigenLayer Dominates

Sep 13, 2024, 07:35 PM

Bitcoin is entering the restaking space, traditionally dominated by Ethereum. Babylon Labs has introduced Bitcoin staking, leading to a significant increase in Bitcoin transaction fees. This new approach allows Bitcoin holders to unlock yield, moving beyond the traditional 'HODLing' strategy. Co-founder David Tse highlighted that Bitcoiners are ready to evolve. Restaking, which first gained popularity through protocols like EigenLayer, presents both challenges and opportunities for Bitcoin. The introduction of native yields on Bitcoin is a notable development, with applications leveraging Bitcoin's security. Despite the excitement, the restaking sector has seen a decline in activity, with less than 1,000 daily restakers, down 90% from its February peak. EigenLayer continues to dominate the market with an 84% share, although it has experienced a significant outflow of 94,000 ETH, valued at approximately $222 million. Babylon's new projects are among the top 6 in the space.