Will 2025 become the year of Bitcoin DeFi?
Bitcoin-native decentralized finance (DeFi) is projected to thrive in 2025 due to increased institutional adoption and a maturing ecosystem. Bitcoin staking has a significant growth potential, with estimates suggesting a market opportunity of $200 billion. As of December 30, Bitcoin staking holds approximately $5.5 billion in total value locked (TVL). Institutional interest is expected to rise following Bitcoin's price surpassing $100,000, with key protocols like Babylon and EigenLayer positioned to benefit. Staked Bitcoin ETFs, such as Valour's launched in Europe, could further attract institutional investors. Liquid staking tokens (LSTs) are emerging, facilitating complex DeFi applications. Various Bitcoin layer-2s already support DeFi ecosystems, and innovative strategies are anticipated to develop, potentially establishing Bitcoin staking as a benchmark for DeFi lending and borrowing.
