#BTC ($BTC ) is no longer just 'digital gold' for storing value – but is gradually becoming a profit-generating asset thanks to the boom of BTCFi, according to a new report from Binance.

📈 BTCFi Increased 2,700% in One Year

The total value locked (TVL) in DeFi protocols on the Bitcoin platform has increased by over 2,700% in the past year, surpassing the $8.6 billion mark.

BTCFi – the concept refers to DeFi applications built on Bitcoin – is opening up opportunities for holders to earn profits from BTC through lending, providing liquidity, and other DeFi mechanisms.

Binance: 'The development of BTCFi could cause BTC to be viewed as a dynamic on-chain asset, not just a store of value.'

Bitcoin DeFi, total value locked, 2025 chart

📉 Lower Interest Rates Could Boost BTC Demand

With expectations that the Fed will lower interest rates in the near future, money flows may strongly into digital assets – especially BTC if it starts generating yield.


Binance believes that BTCFi combined with low interest rates will strengthen positive sentiment towards Bitcoin in the medium and long term.

🧱 Notable Projects in BTCFi

  1. Babylon: Introducing Bitcoin staking for the first time, allowing holdersto earn passive income

  2. Hermetica: Launching USDh –the first stablecoin collateralized by Bitcoin, with a yield of 25%

  3. Runes protocol: Launching after the halving in April 2024 – helping to create fungible tokens (like ERC-20) directly on Bitcoin.

🧠 Long-Term Holders Are Increasingly Buying Back

After hitting a bottom in February, wallets holding BTC for the long term (≥155 days) have begun actively accumulating again, reducing the BTC supply on exchanges. This could lead to a 'supply shock' pushing prices up significantly.

This is a positive sign in the context:

  • The U.S. established a 'Strategic Bitcoin Reserve' under the decree of President Trump on March 7.

  • Bitcoin is mentioned in national events, such as the Crypto Summit at the White House.

BTC supply held by long-term holders

✅ Conclusion

  • BTCFi is opening a new era for Bitcoin – from a store of value to a profit-generating asset.

  • Long-term holders are increasing their buying, TVL is skyrocketing, supportive government policies… are all factorsreinforcing a new bullish cycle for BTC.

💬 Do you think Bitcoin is really entering a 'high-yield' period? Please leave your opinion below?