Native Asset of Bitcoin DeFi Project Surges by More Than 55% This Week Amid New Token Buyback
Threshold Network, the decentralized finance project focused on Bitcoin (BTC), has seen its native asset defy the current market conditions and surge by more than 55% this week. The project is behind tBTC, a decentralized wrapped Bitcoin that is utilized across various DeFi ecosystems.
As of the time of writing, the project’s native token, T, is trading at $0.0223, a significant increase from $0.0143 just one week ago. Ranked 236th by market cap, T has also experienced a nearly 48% surge in the past 24 hours alone.
The sharp rise in T’s price came after Threshold Network announced its plans to restructure its decentralized autonomous organization (DAO) with the aim of reducing annual operational costs by approximately $1.1 million. This move is expected to lead to significant profitability for the project in the future.
According to Threshold Network, the restructuring will result in over $8.5 million in annual savings from the elimination of tBTC staking rewards. This cost efficiency will allow the DAO to cease treasury sales of T tokens and instead strategically reinvest in T token. The DAO treasury will continue to accumulate tBTC through bridge fees and T tokens through buybacks as outlined in TIP-54.
Threshold Network has already made its first purchase of around 30 million T tokens for 5.8 tBTC. The project highlights the close economic relationship between T and tBTC, anticipating a virtuous cycle of growth where increased Total Value Locked (TVL) and bridge velocity drive T’s value, attracting more participants and expanding the ecosystem.
The project’s announcement has generated excitement within the crypto community, with investors closely watching the developments of Threshold Network and its impact on the DeFi sector.
For more updates and news, follow Threshold Network on X, Facebook, and Telegram. Stay informed with email alerts directly to your inbox and don’t miss out on the latest price action and trends in the crypto market.
(Image credit: Midjourney)
