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- Over $8B is now locked in Bitcoin-based DeFi protocols, signaling growing institutional interest and mainstream adoption.
- As more BTC gets locked into DeFi, the reduced circulating supply could create upward pressure on Bitcoin’s price.
After Bitcoin’s expanding role in decentralized finance (DeFi), CNF reported that over $8 billion is now locked across various protocols, signaling BTC’s shift from a store of value to an active asset for staking, lending, and collateralization.
As shared by Rootstock in a recent tweet, Bitcoin DeFi is growing, and builders are being rewarded for contributing to the ecosystem.
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
Previously, Ethereum has dominated DeFi, but Bitcoin is now outpacing Solana and other major networks in total value locked (TVL). Platforms like Babylon Labs, which recently added 23,000 BTC to its ecosystem, now control over $5.5 billion in staked Bitcoin, making it the largest BTC-based DeFi hub.
Unlike traditional staking models, Babylon’s approach relies on non-custodial staking, allowing users to maintain ownership of their BTC while earning rewards.
Lombard Finance Surges with 158% Growth
Another major player in BTC DeFi is Lombard Finance, which has seen explosive growth of 158% in the past few months. With $1.59 billion locked, Lombard utilizes LBTC, a staking token designed to generate passive income for users. The protocol recently expanded to the Sui Network, further increasing its influence.
Unlike Babylon Labs, which focuses on BTC security layers, Lombard integrates cross-chain functionality by leveraging Ethereum and other networks to enhance liquidity and accessibility.
Solv Protocol Expands Bitcoin Reserves
Meanwhile, Solv Protocol has emerged as the third-largest BTC DeFi protocol, managing $685 million in BTC reserves. The protocol is following in the footsteps of major corporate Bitcoin holders like MicroStrategy, aiming to build a significant on-chain BTC reserve.
With a $100 million commitment to expand its holdings, Solv recently introduced SolvBTC.BNB, a yield-bearing BTC staking token that operates on the BNB Smart Chain. This initiative allows Bitcoin holders to generate yield without selling their assets, further increasing BTC’s integration into DeFi ecosystems.
Can Bitcoin’s DeFi Boom Drive Prices Higher?
The growing demand for BTC staking and DeFi integration is seen as a potential catalyst for Bitcoin’s price. As more BTC gets locked into DeFi protocols, the circulating supply decreases, potentially driving upward price pressure.
In the days following the announcement, Bitcoin’s price experienced volatility. As of the latest CoinMarketCap data, Bitcoin is trading at $83,181, reflecting a 0.39% increase over the past day and an 8.74% decline over the past week. See BTC price chart below.
