FameEX Hot Topics | Experts Bullish on BTC DeFi Expansion, Project Triple-Digit Growth by 2025

Interest in Bitcoin’s decentralized finance sector (BTCFi) remains strong, despite the total value locked (TVL) plateauing since early 2025. Analysts attribute BTCFi’s earlier explosive growth to institutional investors entering the market in search of yield, along with the rapid development of key infrastructure throughout 2024, which laid the groundwork for its dramatic rise.

In the final quarter of 2024, BTCFi’s TVL skyrocketed from just over $800 million to $6.51 billion. By December, TVL hit an all-time high before stabilizing above $6 billion. This remarkable surge—over 2,000% in a single year—allowed Bitcoin to surpass Tron, ranking as the third-largest blockchain in terms of TVL. However, the start of 2025 has seen a slowdown, leading some to question whether BTCFi’s momentum can be sustained.

According to Defillama data, BTCFi’s TVL reached a peak of $7.14 billion on January 19, 2025, but gradually declined to approximately $6.58 billion. This decline is not unique to BTCFi. Other major blockchains have also experienced TVL contractions. Ethereum, the leader in TVL, fell from a peak of nearly $77 billion to $57.34 billion. Solana, the second-highest-ranked platform, followed a similar trend, shrinking from its peak shortly after Donald Trump’s inauguration.

Despite the current drop in TVL, optimism for Bitcoin’s role in DeFi persists. Galaxy Digital estimates that by 2030, 2.3% of Bitcoin’s circulating supply—around $47 billion—could be incorporated into BTCFi. These long-term projections suggest the recent slowdown might be temporary, as BTCFi is still in the early stages of its development.

The industry’s initial growth has been extraordinary. Between mid-2024 and the year’s end, more than 62,000 previously inactive bitcoins were deployed through staking protocols, boosting BTCFi’s overall value from $300 million in 2023 to $6.5 billion. With infrastructure for yield generation continuing to expand, analysts anticipate BTCFi could more than triple in value by the end of 2025.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.