DeFi on Bitcoin surging spearheaded by RSK with Total Value Locked above 1.3K BTC

  • Investor appetite for DeFi is very high with most platforms achieving key milestones early in the year
  • For the RSK Network, it has surpassed Lightning Network (LN) total value locked in Bitcoin (BTC), largely boosted by the launch of “Pomp” backed Sovryn project.

While Ethereum has become the dominant DeFi platform, some investors have been choosing the hardier Bitcoin. RSK Network, a smart contract platform built on Bitcoin, is committed to taking the lead in this. In a recent announcement, the project has confirmed that its Total Value Locked (TVL) has crossed 1.3K BTC. The recent surge means that it has surpassed Lighting Network (LN) with 1.2K BTC TVL according to DeFi Pulse.

Much of the growth has come in the past month as the network recorded 50,000 active accounts. In addition, there were 259,000 transactions. On its hashing power, the network set a record after a 72 percent surge in the last month.

The RSK network has in the last few months experienced significant development Its infrastructure developments have enabled it to be simple, faster, and offer to scale to reach up to 100 transactions per second. It does all this without having to compromise the security offered by Bitcoin. But one key launch has been the main driver for the recent upsurge in RSK and TVL.

Sovryn drives RSK growth

Sovryn has been built on top of RSK, offering native and noncustodial trading and lending of BTC. On top of allowing users up to 5x BTC leveraging, holders of BTC, USDT and the Dollar on Chain (DOC) stablecoin can earn interest by lending their assets.

The platform has impressed an elite group of investors led by Bitcoin evangelist Anthony Pompliano. At the time of its launch, Pompliano was reportedly set to invest as much as invest 180 BTCs through his asset management firm, Pompliano Investments.

At the time, the market leader expressed a lot of enthusiasm towards the project which he viewed as the start of a new kind of way to invest in projects – decentralized investing. He stated,

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You will see more proposal-based investment as the crypto industry deepens, with decentralized communities deciding on investments rather than traditional, centralized and founder-based decision-making,

It has since been confirmed that Sovryn agreed to a $9 million investment from a consortium of partners.

In the latest announcement, Sovryn Co-Founder Edan Yago has said:

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The launch of Sovryn, which provides native and noncustodial trading and lending of BTC, represents a major step forward for DeFi projects built on the Bitcoin blockchain. It has driven amazing growth on the RSK blockchain. We are very excited about the future of the platform which has proven to fulfil a need in the Defi space.

He further explained that while most investors think that Bitcoin Layer 2, constitutes only of Lightning Network, sidechains can be powerful compliments. Furthermore, they are currently gaining a lot of traction. Investor’s appetite for DeFi is proving that they are part of Bitcoin’s future.

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John Kiguru is an astute writer with a great love for cryptocurrency and its underlining technology. All day he is exploring new digital innovations to bring his audience the latest developments.

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