Layer-2 blockchains of the Bitcoin network will contribute to the growth of DeFi

Bitcoin is evolving beyond its role as a store of value: second-layer (L2) networks such as Stacks, BOB, Babylon, CoreDAO, and others are unlocking the potential for the flourishing of the Bitcoin DeFi technology ecosystem.

These L2 networks enhance the scalability and programmability of Bitcoin, allowing decentralized finance (DeFi) applications to thrive on the most secure and decentralized blockchain.

According to forecasts for 2025, Bitcoin DeFi is poised for exponential growth. The total value locked (TVL) on Bitcoin L2 could exceed $24 billion, currently represented by wrapped Bitcoin derivatives, which accounts for about 1.2% of the total Bitcoin supply.