Bitcoin's DeFi Surges 2,300% in a Year, Powered by Babylon Protocol
Bitcoin's decentralised finance (DeFi) ecosystem has witnessed remarkable growth, with the Total Value Locked (TVL) surging to $7.4 billion. This impressive increase, a staggering 2,300% in the last year, is largely attributed to the Babylon protocol developed by Babylon Labs.
The Babylon protocol enables Bitcoin holders to stake BTC directly on the Bitcoin network, fostering a trustless BTC liquidity layer using BitVM. This innovation allows native Bitcoin to be used as collateral in DeFi, eliminating the need for wrapping or bridges.
The introduction of dollar-denominated Bitcoin exchange-traded funds (ETFs) has also fuelled this growth. The Lightning Network, the fifth most important protocol in the Bitcoin DeFi space, has contributed to this expansion, with over $5.8 billion deposited in Babylon's smart contracts alone. The Babylon staking platform has captured more than 80% of the TVL in the Bitcoin DeFi ecosystem. Additionally, the emergence of BRC-20 tokens and NFTs via Ordinals is further expanding the possibilities within the Bitcoin DeFi space.
Bitcoin, now the fourth most important blockchain in the DeFi ecosystem, has seen its DeFi space flourish. With the Babylon protocol at its core, driving over 2,300% growth in TVL, and the Lightning Network's support, the Bitcoin DeFi ecosystem continues to evolve and attract significant investment.
Read also:
- Revised Bonus Écologique Boosts French EV Market Share to 63.97%
- Ford Discontinues Popular Top-Seller in Staggering Shift, Labeled as a "Model T Event"
- 2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.
- Summarized Report: Insights from the Realm of Transportation
