This week, Strategy made a move, over $2 billion, and didn't even blink.
Honestly, my first reaction wasn't 'bullish news, time to FOMO in,' but rather to check my uniBTC position on Bedrock. After mulling it over, I came to a conclusion that's the opposite of what most people think—this kind of institutional buying could actually be a more solid support for us retail folks messing around on-chain.
Think about it. When Strategy buys a BTC, it locks it up, won’t mint uniBTC, won’t add it to liquidity pools, and might not even keep it in a hot wallet. The BTC available on the market is dwindling, but the real DeFi players—the core users of Bedrock—are holding coins that, due to their scarcity, become more valuable.
This isn't just me talking nonsense. Messari had some data showing that the percentage of active BTC addresses participating in DeFi has been under 5% for a long time. After institutions enter the game, this ratio won’t spike in the short term, but the 'on-chain weight' of BTC behind each active address will passively increase.
So my judgment on Bedrock hasn’t changed: it’s not competing with institutions for traffic; it’s helping that 5% maximize their efficiency. The more aggressively institutions buy, the more pronounced the value of this 'existing supply activation' becomes.
Would you consider this an indirect assist from the institutions?
@Bedrock #bedrock $BR
Honestly, my first reaction wasn't 'bullish news, time to FOMO in,' but rather to check my uniBTC position on Bedrock. After mulling it over, I came to a conclusion that's the opposite of what most people think—this kind of institutional buying could actually be a more solid support for us retail folks messing around on-chain.
Think about it. When Strategy buys a BTC, it locks it up, won’t mint uniBTC, won’t add it to liquidity pools, and might not even keep it in a hot wallet. The BTC available on the market is dwindling, but the real DeFi players—the core users of Bedrock—are holding coins that, due to their scarcity, become more valuable.
This isn't just me talking nonsense. Messari had some data showing that the percentage of active BTC addresses participating in DeFi has been under 5% for a long time. After institutions enter the game, this ratio won’t spike in the short term, but the 'on-chain weight' of BTC behind each active address will passively increase.
So my judgment on Bedrock hasn’t changed: it’s not competing with institutions for traffic; it’s helping that 5% maximize their efficiency. The more aggressively institutions buy, the more pronounced the value of this 'existing supply activation' becomes.
Would you consider this an indirect assist from the institutions?
@Bedrock #bedrock $BR