Bitcoin DeFi 2025 Forecast: TVL continues to grow, promising prospects

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In 2024, Bitcoin [BTC] performed well in the DeFi field, with the total locked value (TVL) increasing by more than 600%. Looking forward to 2025, the BTC DeFi ecosystem is expected to usher in more breakthroughs.

Driving force of BTC DeFi TVL growth

Babylon leads the ecosystem

Accounting for more than 90% of TVL: Babylon has become the core driver with $5.5 billion in locked assets.

The rise of the pledge narrative: Drawing on the experience of Ethereum, BTC's re-staking has been very popular, with a monthly growth of more than 150%.

Increased institutional participation

BTC becomes the "primary collateral asset": institutions include BTC in DeFi lending, driving market activity.

Technological innovation appeal: Protocols such as Babylon attract more retail and institutional investors with liquidity and security.

Layer 2 innovation

Babylon's upcoming L2 solution combines BTC with the altcoin ecosystem to further stimulate market vitality.

Prospects for BTC DeFi in 2025

TVL continues to rise

Driven by new protocols and users, BTC DeFi TVL may exceed the $10 billion mark.

Ecosystem expansion

Cross-chain interoperability: L2 technology enhances BTC's ability to interact with other chains and enhances overall liquidity.

Derivatives market: The popularity of BTC derivatives will further expand its application in DeFi lending.

Institutionalization process accelerates

More DeFi lending companies plan to use BTC as the core to help BTC become a mainstream collateral asset.

Challenges and opportunities coexist

Competition and market pressure

The first-mover advantage of chains such as Ethereum may limit BTC's expansion space.

Technology and security requirements

BTC DeFi needs to continue to improve protocol security to cope with potential risks brought about by growth.

Regulatory uncertainty

Changes in global regulatory policies may have a significant impact on the BTC DeFi ecosystem.

The future of Bitcoin DeFi is full of potential, and 2025 will be a key turning point in its growth.

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