The Ethereum layer two network StarkNet has announced that it will launch Bitcoin staking in the third quarter of 2025. In a post on X, the L2 stated that Bitcoin holders can now enjoy sustainable rewards by staking their assets on its network.
According to network news, this move is part of its hyper-Bitcoinization efforts. StarkNet announced in March that it aims to unlock decentralized financial opportunities on both the Bitcoin and Ethereum networks as an expansion layer.
L2 stated in its announcement:
"Bringing sustainable rewards to Bitcoin enthusiasts, providing stronger security for Starknet, and offering new building blocks for developers—all achieved at a low cost. The hyper-Bitcoinization on Starknet won't slow down anytime soon."
Interestingly, the announcement did not include further information about the exact launch date or how Bitcoin holders can stake. However, information on its website indicates that users will soon be able to stake major wrapped Bitcoin. Wrapped Bitcoin tokens, such as WBTC, cbBTC, UBTC, iBTC, etc., may be eligible for staking.
Over 200 million STRK tokens staked on StarkNet
The initiative to enable Bitcoin staking comes less than a year after StarkNet became the first major Ethereum L2 and completed the first phase of its transition to proof of stake (PoS).
Switching to PoS aims to achieve decentralization of the network, which also provides STRK holders with an opportunity to earn more rewards. Any user with 20,000 STRK tokens can stake to become a validator, while other users can delegate their tokens.
StarkNet staking metrics (Source: StarkNet)
So far, 105 validators have staked 261.27 million STRK tokens on the network, which is still a small part of its 2.9 billion circulating supply. However, nearly 69,000 holders have actually delegated their tokens to take advantage of a 9.90% annual percentage rate (APR).
StarkNet's staking mechanism is similar to its mainnet Ethereum, with a penalty mechanism that punishes validators who fail to fulfill tasks or engage in malicious behavior. Delegators and validators also need to wait 21 days to withdraw their staked tokens and rewards.
Through staking rewards paid in STRK, Bitcoin holders on the network can earn STRK. The token has increased by 2.41% in 24 hours and by 11.57% in the past seven days, with a current trading price of $0.1518. However, it has fallen by 68.21% year-to-date.
The Bitcoin staking market is growing
Meanwhile, StarkNet entering the Bitcoin staking market means it is joining a rapidly growing market. Bitcoin staking has become one of the fastest-growing areas, with various protocols looking to leverage the enormous liquidity in the network for DeFi opportunities.
According to DefiLlama, Bitcoin staking and re-staking account for over 80% of the total locked value (TVL) of 5.86 billion USD in DeFi on the network. Among them, the TVL of the Babylon Protocol platform reached 4.6 billion USD.
Babylon allows Bitcoin holders to earn rewards while staking their assets through the protocol, while it uses the staked Bitcoin for liquidity and security of the PoS network. The protocol has staked over 57,000 Bitcoin and recently launched its own Layer-1 network Genesis, which is essentially a staking network.
In addition to Babylon, several other platforms also offer staking, re-staking, and liquid staking for Bitcoin. These platforms include Lombard Finance, exSat Credit Staking, Coffer Network, b14g, Chakra, and alloBTC.
