Bitcoin DeFi TVL Surged 2000% in 2024 Ahead of Major BTC Adoption in 2025?

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In 2024, the decentralized finance sector associated with Bitcoin experienced an exceptional growth spurt. This was largely attributed to the significant increase in BTC‘s price and the Bitcoin halving event in April. This sector, often referred to as BTCFi, provides DeFi functionalities on the Bitcoin blockchain, and it saw a staggering 2000% rise in the total value locked (TVL) according to data from DeFiLlama.

Here’s the BTC price along with some other relevant details:
– Price: $102,529
– 24h volatility: 3.6%
– Market cap: $2.03 trillion
– 24h volume: $55.97 billion

2024 saw the Bitcoin Decentralized Finance (DeFi) market begin with a modest total value locked (TVL) of $307 million. By year’s end, this figure had skyrocketed to an astounding $6.5 billion, indicating a remarkable 22-fold growth. This significant expansion underscores the swift progression of BTCFi infrastructure and the burgeoning trust investors place in Bitcoin’s role within decentralized finance.

Who Dominated the Bitcoin DeFi TVL?

According to Binance Research, the significant 2000% increase in Bitcoin DeFi Total Value Locked (TVL) signifies a “groundbreaking year for this sector.” This surge is attributed to notable developments in Bitcoin staking and reinvested staking. Upon closer examination, it appears that the growth is predominantly focused. For instance, the Bitcoin staking and reinvested staking platform Babylon holds an impressive 80% of the total TVL invested in BTCFi. Binance Research further commented on this trend.

As a crypto investor, I’ve been eagerly following the development of this significant Bitcoin DeFi dApp. The exciting news is that their mainnet was successfully launched in August 2024, and their stage 2 testnet went live in January 2025. With this project nearing its full launch, there’s a strong possibility that numerous users have already invested their capital to leverage the platform and potentially become eligible for an upcoming airdrop.

In a significant advancement for Bitcoin-centric DeFi, Babylon became the first platform to introduce Bitcoin staking, marking a historic milestone in the cryptocurrency’s timeline. Within a span of merely two months, the total value locked (TVL) for Babylon experienced a remarkable surge, jumping from $1.61 billion on October 22 to over $5.2 billion by December 31, 2024.

It is evident that the 2024 halving event significantly spurred advancements in decentralized finance (DeFi) functionalities within the Bitcoin network.

How Bitcoin ETFs Contributed to the Rise in Its DeFi Sector?

In January 2024, Bitcoin exchange-traded funds (ETFs) were launched for the first time, experiencing high demand that boosted the Bitcoin price significantly during the entire year of 2024. This surge in popularity, as reported by Binance Research, played a substantial role in propelling the overall movement of Bitcoin.

Last year, the endorsement of Bitcoin Spot ETFs within the U.S. triggered an enormous wave of institutional interest, causing a remarkable 121% increase in Bitcoin’s price. According to Binance Research, this significant rise in Bitcoin’s worth and popularity has attracted more funds into Bitcoin-focused Decentralized Finance (DeFi) applications.

According to the report, as the crypto markets expand and technological advancements occur in both areas, an increased amount of money is being invested by users into Bitcoin-related applications.

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2025-01-17 17:09