Global financial services company Galaxy Digital is making important moves in the field of decentralized finance (DeFi). Latest data from Lookonchain monitoring reveals a significant increase in its long positions. These long positions are specifically taken against the world’s two largest cryptocurrencies. These, of course, as everyone knows, are Bitcoin and Ethereum. Here are the details…
Long position for two cryptocurrencies from Galaxy Digital
A globally known popular company attracted attention with its latest cryptocurrency move. Galaxy Digital, which is familiar to those in the cryptocurrency field, made a move towards Bitcoin and Ethereum. Notably, according to Lookonchain, Galaxy Digital borrowed another $10 million from DAI just six hours ago. To secure this loan, the company staked Wrapped Bitcoin (WBTC) and Ethereum (ETH), depositing these cryptocurrencies worth approximately $178.7 million on DeFi platforms. This move brings the total amount of stablecoins borrowed to approximately $104 million, maintaining its current average rate of 1.25.
Galaxy Digital’s strategy involves taking long positions on popular DeFi platforms such as Aave and Compound. Recent transactions show that the company placed 4,168 WBTC and approximately 16,000 ETH on these platforms, with a total value of over $170 million. In exchange for these assets, Galaxy Digital borrowed 71.6 million USDT and 21.9 million USDC. Time will tell how Galaxy will act in the coming period. Because BTC and ETH prices are in decline for now.
Long position indicates optimism
In the DeFi ecosystem, long users borrow stablecoins against their crypto assets and use them to acquire more cryptocurrencies such as WBTC and ETH. However, this strategy comes with risks, as a drop in the value of ETH could lead to liquidation. The Galaxy Digital team, in particular, is expressing optimism regarding the potential approval of spot Bitcoin ETFs. In a research report shared late last month, the company predicted that spot Bitcoin ETFs could inject at least $14.4 billion into the market within a year.
But meanwhile, the cryptocurrency market is in decline. cryptokoin.com As we reported, volatility in the global crypto market continued on Wednesday. While the total market value decreased by 2.41 percent to 1.36 trillion dollars, the total transaction volume increased by 1.96 percent to 64.45 billion dollars. Bitcoin fell 2.77 percent to $35,423.45. Ethereum, on the other hand, decreased by 3.93 percent compared to the previous day, falling to $ 1,972.75. The 24-hour trading volume was $12.55 billion.
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