Bitcoin DeFi TVL up 2,000% amid bumper 2024 for BTC price, adoption
Bitcoin-based decentralized finance (DeFi) applications experienced significant growth in 2024, with the industry's value increasing over 22 times following April's Bitcoin halving. The total value locked (TVL) in Bitcoin surged over 2,000%, rising from $307 million in January to over $6.5 billion by December 31. This growth is largely attributed to advancements in Bitcoin staking and the Babylon platform, which holds over 80% of BTCFi's TVL. Babylon's TVL increased by 222% in two months, reaching over $5.2 billion. The introduction of Bitcoin-native staking and the Runes protocol further fueled interest in Bitcoin DeFi. The launch of US spot Bitcoin exchange-traded funds (ETFs) significantly boosted Bitcoin prices, which rose over 121% in 2024, with Bitcoin surpassing $100,000 in December. BlackRock and Fidelity dominate the Bitcoin ETF market, controlling over 50% and 23% of total assets, respectively.
