Galaxy Digital appears to be bullish on bitcoin and ethereum as the latest data reveals. The blockchain company recently invested heavily in bitcoin and ethereum positions amid the continued price rise.
Citing data from DeFi wallet tracker DeBank, Lookonchain showed that Galaxy Digital deposited 4,168 WBTC (worth $142 million) and 16,000 eth (worth $28.6 million) in Aave and Compound.
It seems that Galaxy Digital is long $btc and $eth in #Ghost and #Compound.
Galaxy Digital deposited a total of 4,168 $WBTC($142 million) and 16K $eth ($28.6 million) in #Ghost and #Compoundthen he borrowed 71.6 million $USDT and 21.9 million $USDC.https://t.co/2QTPSV1QRn pic.twitter.com/hAFCqDl1tQ
— Lookonchain (@lookonchain) October 28, 2023
Galaxy Digital makes huge deposits into DeFi protocols
Galaxy Digital has always been a supporter of bitcoin. Now, the company has taken action on the long-term future of bitcoin and ethereum.
Specifically, the company deposited Wrapped bitcoin and ethereum worth a total of $170 million in decentralized protocols Aave and Compound as collateral to borrow $71.6 million in USDT stablecoin and $21.9 million in USDC stablecoin.
The level of interest in DeFi protocols for the purpose of investing in cryptocurrencies is a shadow of what it was in 2021, during the peak of the DeFi boom. For example, data from DeFi aggregator DeFiLlama puts the Aave protocol’s current total value locked (TVL) at $5.432 billion.
bitcoin (btc) is currently trading at $34.169. Chart: TradingView.com
This represents a 72% drop from its high point of $19.442 billion in October 2021. However, Galaxy Digital’s DeFi path to going long bitcoin and ethereum signals what could be the return of belief in DeFi protocols.
Why Galaxy Digital bets on bitcoin and ethereum
Galaxy Digital has projected an upcoming bitcoin bull run in one of its recent reports. bitcoin-etf/” target=”_blank” rel=”noopener nofollow”>According to the companybitcoin spot ETFs are a better way for mainstream investors to enter the crypto industry than products on the current market.
These ETFs could attract billions to bitcoin, reaching more than $14.4 billion in inflows in the first year of their approval. With its recent investment move, Galaxy Digital is in a prime position to benefit from bitcoin inflows.
Miguel Novogratz, CEO of the company, also firmly believes that a bitcoin bull run is just around the corner. Even before BlackRock and other investment companies made bitcoin EFT spot requests, Novogratz noted the bitcoin-news/galaxy-digital-ceo-mike-novogratz-says-this-will-kickstart-the-bitcoin-bull-market/” target=”_blank” rel=”noopener nofollow”>growing adoption from Asia toA potential catalyst for a bitcoin bull run.
At the time of writing, bitcoin is trading at $34,194 and looking to take a strong position above $35,000. ethereum has seen a smaller price increase than bitcoin in the last week and is currently trading at $1,786.
On the other hand, both AAVE and COMP reacted when Galaxy Digital went long bitcoin and ethereum on DeFi protocols. These tokens also rose by 7.78% and 9.50% respectively in a 7-day period.
Featured image from Shutterstock
