DeFi lending on Bitcoin-based Liquidium has surged to a four-month high, with 21 BTC borrowed on Dec. 5, coinciding with Bitcoin’s climb to a new all-time high above $100,000. Onchain data shows that loans against Runes made up 57% of Liquidium’s daily volume, contributing 12 BTC, while Ordinals accounted for the remaining 43%, contributing 9 BTC.
Liquidium has been experiencing a steady upward trend over the past year, facilitating over 63,000 loans totaling more than 3,378 BTC. Runes are the dominant collateral on the platform, making up over half of all assets.
Users can borrow Bitcoin against assets such as Runes, Ordinals, Inscriptions, and BRC-20 tokens on Liquidium. The platform’s non-custodial model utilizes Discreet Log Contracts (DLC) for secure escrow, ensuring lenders’ returns are protected even in default scenarios.
The increase in activity on Liquidium reflects Bitcoin’s growing mainstream adoption. Analysts attribute this to BTC’s price rally above $100,000 and the introduction of spot Bitcoin exchange-traded funds (ETFs), which have sparked institutional interest in the ecosystem. Positive market sentiment, driven by expectations of crypto-friendly regulations under a Donald Trump-led US administration, has also contributed to industry optimism.
The native LIQUIDIUM token on the platform has seen a surge in value, rising over 25% in the past week according to CoinMarketCap data.
Looking ahead, Liquidium plans to introduce new features aimed at enhancing user experience. An instant loans feature will enable borrowers to access funds without requiring lender countersignatures, streamlining the loan process for any size of loan. The upcoming Custom Loan V2 upgrade will introduce a gallery-like interface, allowing borrowers and lenders to create and customize loan offers. This shift from the traditional model will make the platform more dynamic and user-friendly, offering an engaging experience akin to browsing a curated collection.
With its consistent growth and planned advancements, Liquidium is poised to play a significant role in the expanding Bitcoin DeFi ecosystem.