State of Babylon Q2 2025

Key Insights

• Babylon Genesis launched on April 10, activating stake slashing and marking the start of Phase-2. Genesis became the first Bitcoin Supercharged Network (BSN) and will coordinate Babylon’s security-sharing protocol as Phase-3 brings additional BSNs online.
• Babylon remained the fourth-largest holder of Bitcoin after major ETF issuers, despite bitcoin staking TVL dropping 12.6% QoQ to 45,600 BTC ($4.9 billion.
• Bedrock was the only major liquid staking protocol to grow during Q2, increasing its TVL by 21.2% QoQ to 4,799 BTC. It also posted 839 BTC in net deposits, outperforming peers amid a broader contraction in Bitcoin liquid staking activity.
• Babylon expanded its ecosystem through integrations with Osmosis, Sui, RedStone, Nexus Mutual, and major custodians, including Kraken and Hex Trust, broadening access to Babylon’s staking infrastructure across DeFi and institutional markets.

Primer

Babylon (BABY) was co-founded in 2022 by David Tse and Dr. Fisher Yu. Their original inspiration stemmed from a research paper on Bitcoin security co-authored with the founder of EigenLayer, Sreeram Kannan. Babylon offers a security-sharing protocol that leverages Bitcoin to help secure Bitcoin Supercharged Networks (BSNs), aka Layer-1 (L1) and Layer-2 (L2) networks. This is facilitated through “Babylon Genesis,” an L1 built on Cosmos whose native token is BABY.