Key Points
- Bitcoin DeFi TVL grew by almost 600% in Q1 2024, with further growth predicted in 2025.
- Babylon led the sector with $5.5B of locked BTC, as demand for BTC yield increased.
Bitcoin’s DeFi Total Value Locked (TVL) experienced a significant increase of nearly 600% in the first quarter of 2024.
This upward trend is expected to continue into 2025, coinciding with the launch of several key L2 platforms.
Record Highs in BTC DeFi
Recent data from DeFiLlama revealed that over 70k BTC, equivalent to $6.68 billion, was locked across the DeFi ecosystem, a record high.
This represents a substantial increase from the 13k BTC locked in October, highlighting the robust growth of the DeFi ecosystem.
Babylon, the latest restaking platform on the network, led the BTC DeFi sector with over 90% of the TVL.
The platform had a TVL of $5.5 billion, demonstrating significant investor confidence.
Babylon’s TVL rose by nearly 150% in the past month, as investors eagerly staked their BTC for yield.
Lombard and SolvBTC were ranked second and third, respectively, indicating that the restaking narrative popular in Ethereum has extended to the Bitcoin ecosystem.
Expectations for 2025
Top executives in the DeFi sector anticipate even more growth in 2025.
Fisher Yu, CTO of Babylon, disclosed plans to combine BTC and the altcoin universe to reap the benefits of liquidity and security through the upcoming Babylon L2 launch.
Institutional DeFi lending firms are also preparing to offer BTC derivatives as collateral this year.
Sidney Powell, CEO of DeFi lending firm Maple Finance, suggested that BTC could become the ‘premier collateral asset’ for DeFi systems.
Many scaling solutions, such as the Lightning Network and Stacks, have planned upgrades to further drive the BTC DeFi renaissance.
