DeFi lending on Bitcoin-based Liquidium has surged to a four-month high, with 21 BTC being loaned out on Dec. 5 as the top asset soared to a new all-time high above $100,000.
According to onchain data, loans against Runes made up 57% of Liquidium’s daily volume, contributing 12 BTC, while Ordinals accounted for the remaining 43%, contributing 9 BTC. This trend reflects the platform’s overall growth, with over 63,000 loans totaling more than 3,378 BTC facilitated in the past year. Runes remain the dominant collateral on the platform, comprising over half of all assets.
Liquidium allows users to borrow Bitcoin against various assets such as Runes, Ordinals, Inscriptions, and BRC-20 tokens. The platform’s non-custodial model utilizes Discreet Log Contracts (DLC) for secure escrow, ensuring that lenders’ returns are protected even in default cases.
The increase in Liquidium’s activity mirrors the rising mainstream adoption of Bitcoin. Analysts attribute this growth 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. Optimism for the industry’s future has also been fueled by expectations of crypto-friendly regulations under a potential Donald Trump-led US administration.
Additionally, Liquidium’s native LIQUIDIUM token has seen a significant uptrend, with its value rising over 25% in the past week, according to CoinMarketCap data.
Looking ahead, Liquidium is preparing to launch new features aimed at enhancing user experience. An upcoming instant loans feature will allow borrowers to access funds without needing lender countersignatures, streamlining the loan process for all sizes of loans. The Custom Loan V2 upgrade will introduce a gallery-like interface, enabling borrowers and lenders to create and customize loan offers. This shift from the traditional model will make the platform more dynamic and user-friendly, providing an engaging experience akin to browsing a curated collection.
With its consistent growth and planned advancements, Liquidium is solidifying its position as a key player in the expanding Bitcoin DeFi ecosystem.