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DeFi lending on Liquidium hits 4-month high as Bitcoin soars past $100K

December 7, 2024
in DeFi
Reading Time: 2 mins read
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DeFi lending on Liquidium hits 4-month high as Bitcoin soars past $100K
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DeFi lending on Bitcoin-based Liquidium reached a four-month high of 21 BTC on Dec. 5, following the top asset climb to a new all-time high above $100,000.

Onchain data reveals that loans against Runes accounted for 57% of Liquidium’s daily volume, contributing 12 BTC, while Ordinals accounted for the remaining 43%, contributing 9 BTC.

These numbers reflect a year-long upward trend for Liquidium, which has facilitated over 63,000 loans totaling more than 3,378 BTC. Runes dominate the platform, comprising over half of all collateral.

Liquidium enables users to borrow Bitcoin against assets like Runes, Ordinals, Inscriptions, and BRC-20 tokens. Its non-custodial model employs Discreet Log Contracts (DLC) for secure escrow, ensuring that lenders’ returns are protected, even in default cases.

The rise in Liquidium’s activity mirrors Bitcoin’s increasing mainstream adoption. Analysts point to BTC’s price rally above $100,000 and the introduction of spot Bitcoin exchange-traded funds (ETFs) as key factors driving institutional interest in the ecosystem.

Additionally, market sentiment has dramatically improved with expectations of crypto-friendly regulations under a Donald Trump-led US administration, fueling optimism for broader industry growth.

Moreover, the platform’s native LIQUIDIUM token is also enjoying an uptrend, according to CoinMarketCap data, which has pushed its value up over 25% during the past week.

New features

Looking ahead, Liquidium is set to launch features designed to streamline user experience. A new instant loans feature will allow borrowers to access funds without requiring lender countersignatures, simplifying the process for loans of any size.

The upcoming Custom Loan V2 upgrade will introduce a gallery-like interface, enabling borrowers and lenders to create and customize loan offers.

This shift from the traditional model — where only lenders could initiate offers — will make the platform more dynamic and accessible. The intuitive design promises an engaging experience where users can explore loan opportunities as effortlessly as browsing a curated collection.

Liquidium’s consistent growth and planned advancements position it as a key player in the expanding Bitcoin DeFi ecosystem.

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