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Sui is advancing its position as a top-tier hub for institutional-grade Bitcoin decentralized finance (DeFi) by integrating sBTC and supporting the Stacks network. This strategic move aims to unlock new opportunities for Bitcoin holders to participate in DeFi on a high-performance blockchain built for scalability.
Sui Integrates sBTC to Boost Bitcoin DeFi
The Sui Foundation announced its integration with sBTC and support for the Stacks network on May 1. sBTC, a Bitcoin-backed asset developed by Stacksβa Bitcoin layer-2 solutionβenables users to utilize their Bitcoin in DeFi without relying on centralized custodians. This integration is expected to expand Suiβs capabilities in the Bitcoin DeFi ecosystem, offering innovative solutions for lending, borrowing, and trading.
βFor too long, BTC has been treated as a passive asset. sBTC on Sui means holders can earn yield, participate in DeFi, and stay true to Bitcoinβs trustless ethosβall on Sui, a blockchain built for performance and scale.β
β Adeniyi Abiodun, Mysten Labs Co-founder
Why sBTC and Sui Are a Perfect Match
With over $6.5 billion currently locked in Bitcoin DeFi protocols, the demand for BTC-focused financial products is growing rapidly. Suiβs integration of sBTC aligns with this trend, offering a decentralized method of utilizing Bitcoin in DeFi. Suiβs unique object-based architecture and parallel transaction processing enhance scalability, making it an attractive platform for developers to build DeFi applications.
By operating a validator on the Stacks network, Sui is strengthening its position in the Bitcoin ecosystem. This collaboration enables Bitcoin holders to earn yield and engage in decentralized financial activities while adhering to Bitcoinβs trustless principles.
Impressive Growth in Suiβs Ecosystem
Suiβs total value locked (TVL) has surged by 50% over the past month, reaching $1.8 billion. Notably, more than 10% of this TVL now comes from Bitcoin and Bitcoin-derived assets. Stablecoin inflows have also hit an all-time high, with $888 million recorded as of May 1, reflecting the growing adoption of Suiβs DeFi solutions.
On-chain analytics reveal significant momentum for Sui. According to analysts, nearly 29% of Ethereum outflows bridged through Wormhole over the past year have flowed into Sui. This highlights the platformβs increasing appeal among users transitioning from other networks.
Institutional Momentum and Expanding Accessibility
Institutional interest in Sui is also on the rise. Grayscale has introduced the SUI Trust, enabling accredited investors to gain exposure to the ecosystem. Additionally, a new partnership with xPortal and xMoney has made SUI usable across Europe via a Mastercard-enabled virtual card, further enhancing its accessibility.
The integration of sBTC into the Sui ecosystem could mark a pivotal moment for Bitcoin DeFi. With Bitcoinβs $1.6 trillion in dormant capital, Suiβs high-performance infrastructure is well-positioned to attract both retail and institutional participants, driving innovation in the digital asset space.
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