FameEX Hot Topics | Experts Optimistic About BTC DeFi Expansion, Foresee Triple-Digit Gains by 2025

Interest in Bitcoin’s role in decentralized finance (BTCFi) remains strong, even though its total value locked (TVL) has plateaued since early 2025. Analysts credit BTCFi’s previous rapid growth to the influx of institutional investors seeking yield and the emergence of essential infrastructure, which set the stage for its rise throughout 2024.

During the final quarter of 2024, BTCFi’s TVL soared from just over $800 million to $6.51 billion. In December 2024, TVL reached a record high before stabilizing above $6 billion. This massive surge—over 2,000% throughout the year—helped Bitcoin surpass Tron, positioning it as the third highest-ranking blockchain by TVL. Despite this remarkable growth, the beginning of 2025 has brought a slowdown, prompting questions about the sustainability of the BTCFi narrative.

Defillama data shows that BTCFi TVL peaked at $7.14 billion on January 19, 2025, before declining gradually to around $6.58 billion. This trend mirrors a broader pattern across other blockchains. Ethereum, which continues to lead in TVL, dropped from a peak of nearly $77 billion to $57.34 billion. Solana, the second-highest platform, also saw its TVL shrink, despite reaching its peak shortly after Donald Trump’s presidential inauguration.

Nevertheless, enthusiasm for Bitcoin in DeFi remains undeterred. According to Galaxy Digital, roughly 2.3% of Bitcoin’s circulating supply—equivalent to around $47 billion—could be integrated into BTCFi by 2030. Such projections suggest that the current downturn may be temporary, as the BTCFi sector is still considered to be in its infancy.

The sector’s early growth has been remarkable. From mid-2024 through the year’s end, over 62,000 previously dormant bitcoins were activated through staking protocols, contributing to the industry’s rise from $300 million in 2023 to $6.5 billion, representing 0.33% of Bitcoin’s total market cap. As yield-generating infrastructure matures, analysts anticipate BTCFi to more than triple in value by the end of 2025.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.