- More than $ 8 billion are now bound in Bitcoin-based defi protocols, which indicates a growing institutional interest and mainstream acceptance.
- Since more and more BTC are bound in defi, the falling circumferential amount of token could increase the course.
Due to the growing role of Bitcoin in decentralized finance – CNF reported – where more than $ 8 billion are blocked in several protocols, BTC changes from the value -placed asset to an active asset for operations, loans and collateral. As root floor recently announced in a tweet, Bitcoins grows defi content, and it is obviously worth it.
Your knowledge. Your contributions. Your rewards.
Hacktivator contributors just got rewarded for their work, and you could be next.Bitcoin DeFi is growing, and we’re rewarding those who build it. https://t.co/bGRNW0FaRi pic.twitter.com/4mtTbDe3wq
— Rootstock (@rootstock_io) March 12, 2025
So far, Ethereum has dominated Defi, but Bitcoin now overtakes Solana and other large networks at the TVL. Platforms such as Babylon Labs, which recently bought 23,000 BTC, are now checking more than $ 5.5 billion in Bitcoin inserts and are therefore the largest BTC-based defi hub.
In contrast to traditional staking models, Babylon Labs’ approach is based on an approach that enables users to keep ownership of their BTC and at the same time earn rewards.
Lombard Finance grows 158%
Another important player in the BTC Defi area is Lombard Finance, which has recorded an explosive growth of 158 % in recent months. Lombard has blocked $ 1.59 billion and uses LBTC, a staking token that was developed to generate passive income for users. The protocol was recently extended to the SUI Network, which further increases its influence.
In contrast to Babylon Labs, which focuses on BTC security levels, Lombard integrates cross-chain functions by using Ethereum and other networks to improve liquidity and accessibility.
Solv protocol increases bitcoin reserves
In the meantime, Solv Protocol has risen to the third largest BTC DEFI protocol and manages BTC reserves of $ 685 million. The protocol comes into the footsteps of large Bitcoin owners such as Microstrategy and strives to build a significant BTC reserve on the chain.
With a promise of $ 100 million to expand its stocks, Solv recently introduced Solvbtc.bnb, a return-prone BTC-Staking token that works on BNB Smart Chain. This enables Bitcoin owners to generate returns without selling their assets, which further improves the integration of BTC into defi systems.
Can Bitcoins defi boom drive the course up?
The growing demand for BTC use and defi integration is seen as a potential catalyst for the Bitcoin price. The more BTC is integrated into Defi protocols, the lower the circulating offer, which could drive up the price.
In the days after the announcement, the Bitcoin course lost strong fluctuations. According to the latest data from CoinmarketCap, Bitcoin is traded at $ 83,181, which means an increase of 0.39 % over the last day and a decrease of 8.74 % over the past week.
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