BlackRock’s aggressive accumulation of Bitcoin ($BTC) and Ethereum ($ETH) could soon position it as the top custodian of the world’s largest cryptocurrencies. The company is nipping at the heels of Binance, which currently holds the number one spot.
Over the past several months, BlackRock’s $BTC and $ETH ETFs have massively increased their coins in custody.
In addition, continued whale buys of these cryptocurrencies continue to reduce their liquid supply, which helps push their prices higher.
Higher prices, naturally, increase the attractiveness of the coins, so more traders buy or hold them.
This also shines a light on projects that build upon their respective chains, especially if they make transactions cheaper or expand a coin’s utility.
As the world’s top cryptocurrency, Bitcoin continues to attract investors of all sizes. However, it’s bogged down by fundamental issues such as slow transactions, which contribute to high fees. Also, $BTC has limited applications since it can’t be used for staking or interacting with dApps.
This project aims to create a Bitcoin Layer 2, which should bring Solana-level speeds, low transaction costs, and expanded utility to the Bitcoin ecosystem.
Think of it as a fast lane to Bitcoin’s heavily congested Layer 1.
When launched, you’ll be able to send your $BTC to the L2 via a Canonical Bridge. This creates a wrapped $BTC of the same value on the L2. You can then use this for things $BTC couldn’t do before, like trading and staking.
This high-speed environment is powered by a Solana Virtual Machine, which makes transactions significantly faster and cheaper than on the L1.
To ensure that the actual amount and value of your $BTC is up to date, the L2 regularly synchronizes with the L1. Then, if you want to bring your coin back to the base layer, simply withdraw it, and it will be sent to your Bitcoin wallet address.
Staking is another option if you want to earn passive income from your $HYPER tokens. When you do, you’ll enjoy rewards at 89% p.a.
Growing interest from institutions like BlackRock is a boon for top cryptocurrencies like $BTC and $ETH. In effect, they reduce the number of coins circulating in the market, making them scarcer and therefore more expensive.
Disclaimer: Do your own research. This is not investment advice.
