Will 2025 Be a Boom Year for Bitcoin DeFi?

2024 is a breakout year for Bitcoin, attracting over $100 billion from institutional buyers. However, the Bitcoin DeFi segment remains untapped and is still a "fertile ground".

Will 2025 Be A Boom Year For Bitcoin Defi

The year 2025 is poised to witness a significant boom in Bitcoin DeFi, as major institutions increasingly embrace Bitcoin and the Bitcoin DeFi ecosystem continues to evolve.

1. The Massive Potential of Bitcoin Staking

The Bitcoin staking market is showing immense growth potential. By the end of 2024, the total value locked (TVL) reached $6.55 billion, according to data from DeFiLlama.

TVL Bitcoin
TVL Bitcoin

Matt Hougan, Head of Research at Bitwise, stated:

The market has all the right conditions for Bitcoin staking to take off. Even a modest 3% yield is compelling compared to traditional investment channels.

Hougan predicts the market could grow to $200 billion.

Alexei Zamyatin, co-founder and CEO of Build on Bitcoin, offered an even bolder forecast, suggesting Bitcoin DeFi TVL could expand 300-fold in the near future.

We’ve engaged with numerous investors and large funds—all of them are eager to leverage their Bitcoin for returns

He shared.

Related: Michael Saylor Gifts Christmas Presents to MicroStrategy Shareholders in Bitcoin

2. Institutional and Government-Driven Investment

The year 2024 marked a historic milestone as Bitcoin surpassed the $100,000 threshold, drawing over $100 billion into Bitcoin ETFs.

Dean Tribble, CEO of Agoric Network, commented:

This record-breaking price will attract more institutions and regulators, driving further momentum for the entire crypto industry in 2025.

Protocols like Babylon (Bitcoin network staking) and EigenLayer (restaking on Ethereum using WBTC) are leading the trend, with TVLs of $5 billion and $15 billion, respectively. Additionally, the launch of Bitcoin staking ETFs in Europe, offering an attractive 5.65% APR, is creating new opportunities for institutional investors.

TVL Babylon
TVL Babylon

3. A Maturing DeFi Ecosystem

Liquid staking tokens (LSTs) for Bitcoin are gaining traction, with TVL hitting $2.5 billion. Layer-2 platforms like RSK, Merlin, and Stacks have established comprehensive DeFi ecosystems offering a wide range of services, from decentralized trading to lending.

Jacob Phillips, co-founder of Lombard, highlighted:

We’ll see an evolution from simple strategies like earning yields on held Bitcoin to more complex transactions such as options trading. Bitcoin staking yields could become the new benchmark for the market, potentially replacing U.S. Treasury bonds in the lending and borrowing landscape of DeFi.

Love

0.0/5

Love

Latest

Bnb Sets New All Time High After Surging 21% In A Week

News | Altcoin | Editor Choice

BNB Sets New All-Time High After Surging 21% in a Week

After surging 21% in just a week, BNB has soared to a new all-time high, capturing the spotlight as the cryptocurrency market rallies.

Crypto Whales Intensify Activity In Uptober As Market Cap Surpasses $4 Trillion

News | Altcoin | Editor Choice

Crypto Whales Intensify Activity in Uptober as Market Cap Surpasses $4 Trillion

The global cryptocurrency market kicked off “Uptober” with renewed enthusiasm as total capitalization surpassed $4 trillion, while whale activity surged — hinting at strategic moves across Bitcoin, Ethereum, and key altcoins amid growing market volatility.

Bitcoin Hits A New Ath As Profit Margins Continue To Shrink

News | Bitcoin | Editor Choice

Bitcoin Hits a New ATH as Profit Margins Continue to Shrink

Although Bitcoin (BTC) continues to set new price records after every halving, historical data shows that the world’s largest cryptocurrency is experiencing diminishing returns with each new cycle.

Cz Says He Was Threatened To Pay $4.4 Billion

News | Editor Choice | Policy & Regulations

CZ Says He Was Threatened to Pay $4.4 Billion

CZ, the founder of Binance, has shaken the crypto world by claiming he was threatened to pay $4.4 billion to avoid false accusations that his exchange financed terrorism.

Binance Hits Record Altcoin Trading Volume As Altseason Heats Up

News | Altcoin | Editor Choice

Binance Hits Record Altcoin Trading Volume as “Altseason” Heats Up

Binance has set a historic record as altcoins captured 82.3% of total trading volume, signaling a new “altseason” fueled by surging institutional inflows and investor demand for non-Bitcoin tokens.

Screenshot 2025 09 10 100533