Babylon Labs Sees Major Withdrawal of Bitcoin, Impacts TVL and Potential Selling Pressure

Babylon Labs experienced a substantial outflow of Bitcoin (BTC), as whales withdrew over 14,929 BTC just after the launch of their Genesis L1 chain. This move coincided with Babylon’s recent airdrop of its native token, BABY, highlighting a potential shift in investment strategy. The protocol initially held over 57,000 BTC for staking and point farming, but this sudden withdrawal has significantly decreased its total value locked (TVL), now at approximately $2.76B. The unstaked Bitcoin was transferred to four anonymous wallets, with one holding nearly $1.1 billion worth of BTC.