Bitcoin Adoption On Sui Gains Momentum As Threshold Network And Sui Launch Phase 2 Of tBTC Integration

Threshold Network, the decentralized protocol behind the Bitcoin-backed asset tBTC, introduced alongside Layer 1 blockchain Sui Network the launch of Phase 2 of their tBTC integration, enabling new bridges and increasing alternatives for Bitcoin use in decentralized finance (DeFi).

For years, Bitcoin, the biggest cryptocurrency, has largely remained idle as “digital gold.” On Sui, nevertheless, tBTC and different BTCFi ecosystem deployments have launched new avenues for Bitcoin liquidity, fostering lively adoption throughout varied monetary devices. On Alphalend, a lending protocol on Sui, customers provided over $10 million in tBTC, with practically half borrowed, demonstrating sturdy demand for Bitcoin-based credit score markets. Additionally, liquidity swimming pools and lending markets contributed greater than $2.8 million in additional TVL, reflecting widespread consumer participation.

Phase 1 established that tBTC had achieved product–market match on Sui, making a basis for the broader growth envisioned in Phase 2. 

“Phase 1 proved that there’s a rising demand for trust-minimized Bitcoin onchain, and Sui is the proper dwelling for it,” stated Maclane Wilkison, CEO and Co-Founder of Threshold Labs, in a written assertion. “When customers bridge Bitcoin, provide it to markets, and actively borrow in opposition to it, that’s the clearest sign of product–market match,” he added.

Sui is among the many first non-EVM networks to handle the growing demand for onchain Bitcoin utility. Of the roughly 19.5 million BTC at present in circulation, solely a small portion is actively utilized in DeFi, with the bulk targeting Ethereum. While Ethereum has historically dominated Bitcoin DeFi exercise, Sui is rapidly capturing market share by providing Bitcoin-backed lending, buying and selling, and yield alternatives. From Alphalend’s cash markets to Bluefin liquidity swimming pools and collateralized BTC choices on Bucket Protocol, Sui is establishing itself as an rising hub for Bitcoin-based DeFi.

tBTC Phase 2 Launch On Sui Introduces Seamless Bridging And Optimized Yield Opportunities For Bitcoin

Bitcoin represents over 50% of the worldwide cryptocurrency market cap, and the launch of tBTC on Sui faucets into the huge market alternative to make Bitcoin programmable, composable, and yield-bearing.

“Bitcoin DeFi is having its breakout second on Sui, powered by neighborhood demand and modern builders like Threshold who’re assembly that demand,” stated Adeniyi Abiodun, Co-Founder and Chief Product Officer at Mysten Labs, in a written assertion. “Sui has turn out to be a house for Bitcoin liquidity in file time as customers look to place their as soon as static Bitcoin to make use of in Sui’s dynamic onchain surroundings,” he added.

Phase 2 builds on tBTC’s preliminary deployment on Sui by introducing seamless bridging and automatic yield optimization methods. 

tBTC can now be transferred from Ethereum to Sui through the Threshold App, powered by Wormhole, enabling clean cross-chain motion. The AlphaFi auto-looping vault compounds lending rewards a number of occasions day by day, optimizing returns for deposited tBTC in Alphalend’s cash market with a low-cost efficiency price and no entry or exit charges. 

Community campaigns for AlphaFi and Alphalend will have interaction customers by way of interactive quests, selling participation in lending, borrowing, and auto-looping vaults. Phase 2 signifies substantial progress for BitcoinFi on Sui, constructing on Phase 1’s affirmation of product–market match, which noticed thousands and thousands in liquidity provided and powerful engagement throughout lending, buying and selling, borrowing, and neighborhood initiatives. 

Together with different ongoing BitcoinFi efforts, this section expands cross-chain entry, structured yield merchandise, and capital-efficient methods, demonstrating rising market demand, deeper integration of Bitcoin into Sui’s monetary ecosystem, and a pathway towards sustained adoption and worth creation.

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