Bitcoin News Today: BitcoinFi TVL Hits $7.39 Billion as Staking Dominates Growth

Maestro, a leading Bitcoin Finance (BitcoinFi) infrastructure provider, has released its latest report, The State of BitcoinFi in Q2 2025: Research, offering a comprehensive analysis of Bitcoin’s evolving financial ecosystem. The report highlights the ongoing transition of Bitcoin from a store of value to a dynamic financial network, with growing integration into traditional finance (TradFi) and the development of on-chain applications [1].

The report reveals that staking has emerged as the most widely adopted application in BitcoinFi, with over 68,500 bitcoin in total value locked (TVL), equivalent to $7.39 billion. Re-staking has also seen significant growth, with $3.32 billion in BTC being re-staked, securing over $10 billion through yield-bearing protocols. Babylon leads in scale with $4.79 billion TVL, while Solv, Lombard, and CoreDAO are advancing innovations in liquid staking tokens (LSTs), restaking strategies, and dual-token security models. Liquidium is spearheading Bitcoin-native lending, with over $500 million in volume [1].

CoreDAO’s dual staking model is gaining traction, with over $615 million in BTC staked. This approach allows stakers to earn block rewards from native CORE tokens and a share of transaction fees. However, challenges persist, including misalignment between staking returns and treasury rates, as well as fragmented liquidity across chains and protocols. The long-term sustainability of BTC-secured networks remains a question [1].

Bitcoin’s Layer 2 (L2) and scaling layers hold $5.52 billion in TVL, reflecting strong developer and user interest in native smart contracts, yield generation, and asset allocation, while maintaining self-custody and settlement guarantees. The Stacks layer has shown the most growth, more than doubling its TVL in Q2 and adding approximately 2,000 BTC. While sidechains still dominate the asset allocation in BitcoinFi, the architecture is diversifying, with rollups and execution layers gaining traction [1].

Despite Bitcoin’s $5.5 billion TVL across scaling layers lagging behind Ethereum’s $116 billion DeFi TVL, the emergence of new sidechains, rollups, and execution environments is pushing Bitcoin beyond its traditional role as a passive reserve asset [1].

In the metaprotocols space, runes, ordinals, and BRC-20 tokens accounted for 40.6% of all Bitcoin transactions in the first half of 2025. BRC-20 volume reached $128 million, while ordinals saw a strong rebound, with over 80 million inscriptions by mid-2025, generating 6,940 BTC (~$681 million) in fees. Runes are also showing signs of recovery after a sharp decline in minting and trading volume at the end of 2024 [1].

Stablecoins have gained prevalence in BitcoinFi, with $860 million in TVL and over 42% growth quarter-over-quarter. CDP-based stablecoins, such as Avalon’s USDa ($559 million), are gaining early traction, while high-yield options like Hermetica’s 25% APY offering reflect strong demand for capital-generating assets. However, challenges remain, including fragmented liquidity and oracle design issues for CDPs, as well as trade-offs between performance and decentralization [1].

Venture funding in BitcoinFi has surged to $175 million across 32 rounds in the first half of 2025, with a significant focus on DeFi, apps, and custody. While infrastructure previously dominated investment, capital is now shifting toward usability and product development. Leading investment firms such as Pantera Capital, Founders Fund, and Standard Crypto have validated the space, with deals indicating a growing synergy between infrastructure depth and application-layer traction [1].

Source: [1] The State of BitcoinFi in Q2 2025: Research (https://coinmarketcap.com/community/articles/68983ebad3f2f1289a152f97/)