Galaxy Digital’s Bullish Move: Huge Deposits Into DeFi Protocols
Galaxy Digital, a prominent blockchain company, has recently demonstrated its bullish outlook on bitcoin and ethereum through significant investments. This investment comes amid the ongoing surge in the prices of these cryptocurrencies.
According to data from DeFi portfolio tracker DeBank, Lookonchain has reported that Galaxy Digital deposited 4,168 WBTC (valued at $142 million) and 16,000 ETH (valued at $28.6 million) into the decentralized protocols Aave and Compound.
Galaxy Digital’s Strategic Deposits
The company’s move showcases their long-term conviction in the future of bitcoin and ethereum. Galaxy Digital has deposited Wrapped bitcoin and ethereum, with a combined value of $170 million, as collateral in Aave and Compound. In return, they have borrowed $71.6 million in USDT and $21.9 million in USDC stablecoins.
Dwindling Interest in DeFi Protocols
The current interest in DeFi protocols for cryptocurrency investment pales in comparison to the enthusiasm observed during the peak of the DeFi boom in 2021. DeFi aggregator DeFiLlama’s data reveals a sharp decline in the Total Value Locked (TVL) of the Aave protocol, which currently stands at $5.432 billion. This represents a staggering 72% drop from its all-time high of $19.442 billion in October 2021. Nevertheless, Galaxy Digital’s recent investment in DeFi protocols suggests a potential resurgence of confidence in these platforms.
Galaxy Digital has laid out its bullish predictions for bitcoin in a recent report. The company believes that spot bitcoin ETFs offer conventional investors a better entry point into the crypto industry compared to existing market products. If these ETFs are approved, they have the potential to attract billions of dollars, with inflows expected to exceed $14.4 billion in the first year.
By strategically positioning themselves through their recent investments, Galaxy Digital stands to benefit from the anticipated influx of funds into bitcoin. CEO Mike Novogratz shares this optimism, predicting an upcoming bitcoin bull run. Before BlackRock and other investment companies filed applications for spot bitcoin ETFs, Novogratz highlighted the increasing adoption of bitcoin in Asia as a catalyst for the bull market.
At the time of writing, bitcoin is currently trading at $34,194 and looking to stabilize above $35,000. ethereum has experienced a less significant price increase over the past week and is currently trading at $1,786.
Furthermore, Galaxy Digital’s move to go long on bitcoin and ethereum has had a positive impact on the DeFi protocols AAVE and COMP. Both tokens have seen a 7-day increase of 7.78% and 9.50% respectively.
In summary, Galaxy Digital’s significant deposits into DeFi protocols, as well as their bullish outlook on bitcoin and ethereum, reflect their belief in the long-term potential of these cryptocurrencies and the resurgence of interest in DeFi platforms.
### News source: bitcoinist.com