Alisa Davidson
Revealed: June 23, 2025 at 6:47 am Up to date: June 23, 2025 at 6:47 am
Edited and fact-checked:
June 23, 2025 at 6:47 am
In Transient
Bitcoin is evolving past a digital retailer of worth right into a programmable asset, driving quick progress in native DeFi purposes and increasing its position inside the DeFi ecosystem.
Bitcoin, traditionally acknowledged as a digital retailer of worth and hedge asset, is getting into a brand new section marked by enhanced programmability, which is regularly reshaping its place inside the decentralized finance (DeFi) sector.Â
Over the previous few years, a number of initiatives have expanded Bitcoin’s utility, enabling it to assist extra advanced monetary purposes akin to these on Ethereum. In 2024, this pattern accelerated considerably, with the full worth locked throughout Bitcoin-based DeFi platforms rising from roughly $307 million to round $6.5 billion by yr’s finish—a greater than twentyfold rise.Â
A considerable portion of this capital, near 80%, was attributed to a staking platform named Babylon, whose TVL grew from roughly $1.6 billion in October to round $5 billion, indicating heightened curiosity in yield-generating alternatives inside the Bitcoin ecosystem.
Not like earlier approaches the place Bitcoin was usually transferred to Ethereum-based protocols by means of wrapping mechanisms, latest developments in sensible contract performance now enable worth to stay natively inside the Bitcoin community. Consequently, Bitcoin-centric DeFi, as soon as thought of contradictory, is now rising as a tangible and increasing sector.Â
This progress has been supported by technical developments, such because the rollout of native staking and restaking protocols, and favorable macroeconomic developments, together with the approval of US spot Bitcoin exchange-traded funds (ETFs), which have contributed to rising institutional involvement.
SatLayer Advances Bitcoin DeFi By Enabling Native Programmability And dApp Assist
As the event of DeFi inside the Bitcoin ecosystem progresses, SatLayer has emerged as a notable infrastructure platform contributing to this shift by extending the asset’s utility by means of programmability. The platform allows Bitcoin, as soon as secured by way of Babylon, to be utilized in sensible contracts supporting extra decentralized purposes or providers—known as Bitcoin Validated Providers (BVS). This setup successfully creates a framework wherein builders can leverage Bitcoin’s inherent safety by gaining assist from BTC holders who stake their belongings in alternate for supplementary rewards, past typical staking yields.Â
SatLayer additionally incorporates programmable slashing mechanisms, permitting automated penalties by means of sensible contracts if a collaborating service or operator fails to fulfill predefined safety requirements. Not like conventional approaches that required wrapping or custodial options to allow Bitcoin’s use in sensible contracts—usually shifting the asset off its native chain—SatLayer maintains Bitcoin’s position on the protocol layer, preserving its decentralized integrity.Â
Preliminary participation has been substantial, with many improvement groups partaking after the platform’s Devnet rollout. A hackathon hosted by Babylon additionally noticed over 70 builders experiment with early variations of SatLayer’s BVS system. These developments level to an increasing ecosystem of native Bitcoin purposes, together with use instances similar to decentralized insurance coverage and collateral-backed cross-chain infrastructure.
SatLayer Secures $8M To Advance Bitcoin Programmability As BTC Liquidity Expands Throughout DeFi Ecosystems
SatLayer’s progress seems to be supported by a mix of strategic funding and a transparent technological roadmap. In August 2024, the platform secured $8 million in pre-seed funding from a mixture of crypto-focused enterprise capital corporations, together with Hack VC and Fort Island Ventures, in addition to established monetary establishments similar to Franklin Templeton.
Concurrently, broader trade developments point out a rising curiosity in integrating Bitcoin liquidity throughout numerous blockchain ecosystems. For instance, networks like Solana have begun incorporating wrapped Bitcoin and Bitcoin-based liquid staking tokens. If these developments proceed alongside their present path, Bitcoin’s involvement in DeFi may broaden, probably elevating the full worth locked throughout its ecosystem to the size of tons of of billions of {dollars}. Some analysts recommend that programmability could play a central position on this shift, positioning Bitcoin not simply as a retailer of worth, however as a foundational asset within the evolving DeFi infrastructure.
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About The Creator
Alisa, a devoted journalist on the MPost, makes a speciality of cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
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Alisa Davidson
Alisa, a devoted journalist on the MPost, makes a speciality of cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a eager eye for rising developments and applied sciences, she delivers complete protection to tell and have interaction readers within the ever-evolving panorama of digital finance.
Extra articles
