Galaxy Digital has made a big bet on Bitcoin, Ethereum, and DeFi.
The firm recently parked a cool $142 million in $WBTC and another $28.6 million in $ETH into DeFi playgrounds Aave and Compound. That’s a total of $170 million for those who can’t do quick math.
Remember 2021? The good ol’ days when DeFi was the talk of the town. Well, it’s not exactly the belle of the ball anymore. According to DeFiLlama, $AAVE‘s total value locked (TVL) is sitting at a mere $5.48 billion, a 72% nosedive from its October 2021 peak.
Why are DeFi fans looking at this a bullish signal? 🐂
By using these assets (BTC and ETH) as collateral, Galaxy Digital’s risk management gurus are essentially saying two things.
- They’re comfy with the current market conditions.
- They’re giving a nod of approval to the DeFi protocols they’re using. This is no small thing, especially in DeFi, where protocols can be as stable as a Jenga tower.
Putting $170 million into Aave and $COMP is like saying, “Yeah, we trust you not to mess this up.” It’s a vote of confidence that these platforms have the security and stability to handle their hefty investment.
Galaxy Digital’s latest move could be the defibrillator that DeFi’s flatlining heart needs. ♥️