According to IntoTheBlock, Bitcoin’s integration with decentralized finance (DeFi) is accelerating, with new data indicating that 1% of BTC’s total supply is now locked in DeFi systems. The launch of Coinbase’s new Bitcoin-pegged token cbBTC and increased demand for Bitcoin yields are the main factors driving this move.

The development represents a deeper connection between Bitcoin and the DeFi ecosystem, providing holders with an additional way to access DeFi applications on the Ethereum and Base blockchains through cbBTC.

cbBTC: A rapidly rising star among Bitcoin-based DeFi solutions

Coinbase’s Bitcoin-pegged token cbBTC has quickly become a market leader. According to data from IntoTheBlock five days ago, cbBTC already accounts for 49% of total Bitcoin volume, taking the top spot just two weeks after its launch.

This rapid adoption demonstrates the growing demand for Bitcoin-based DeFi solutions and Coinbase’s success in integrating Bitcoin into the larger DeFi industry.

The development of cbBTC provides an efficient mechanism for Bitcoin holders to leverage their assets in DeFi protocols, thereby expanding the utility of Bitcoin beyond traditional investment opportunities.

On the institutional side, Bitcoin remains popular, with recent reports indicating a significant increase in inflows into Bitcoin spot ETFs. CNF previously revealed that spot Bitcoin ETFs saw a net inflow of $494 million, the highest single inflow since June 4.

Ark Invest and ARKB 21Shares ETFs led the surge with inflows of $203 million. Such large investments show that institutional investors are increasingly confident in Bitcoin's potential as a long-term asset.

As we have previously highlighted, BlackRock has increased its position in the Bitcoin market by purchasing an additional 1,413 BTC. This decision underscores BlackRock’s continued confidence in the crypto space, firmly positioning the asset management giant as a prominent player in the Bitcoin investment space.

BlackRock’s recent acquisition underscores its commitment to Bitcoin, signaling a growing trend of digital currency adoption by large financial institutions.

However, despite the good improvements in both the DeFi and institutional sectors, the price of Bitcoin has recently fallen. Bitcoin is currently trading at $63,602.51, down 3.01% in the past 24 hours.

This decline came after bullish momentum in the previous few days but has now transitioned into a selling pressure phase.