Staking has become a central component of BitcoinFi, with over 68,500 bitcoins locked, and a total value locked (TVL) of $7.39 billion. Three protocols—Babylon, Solv, and Lombard—dominate the market, controlling about 85% of the TVL.
Staking Dominance and Market Concentration
Staking has emerged as the 'core engine of BitcoinFi,' locking more than 68,500 bitcoins (BTC) for a total value locked (TVL) of $7.39 billion, according to a new study from Maestro. The report found that only three protocols—Babylon, Solv, and Lombard—dominate the market, controlling about 85% of the total TVL. Babylon alone accounted for over 47% of the total, with a TVL of $4.79 billion, followed by Solv with $1.96 billion and Lombard with $1.78 billion.
Meanwhile, Lombard leads in the re-staking category with 14,100 BTC, followed by Solv with 7,000 BTC. In total, the TVL being re-staked reached $4.46 billion as of June 30, 2025. Maestro's 'State of BitcoinFi' report also highlights the emergence of dual staking as a model attracting interest, noting that CoreDAO's dual staking alone accounted for up to $615 million in staked BTC.
Although staking is the core engine of BitcoinFi, the report points out ongoing challenges, including below-market yields, fragmented aggregation, and unproven durability.
In response to the continuous growth of BitcoinFi, Maestro stated they expect volumes to soar as more institutions add BTC to their balance sheets and custodial companies activate idle BTC in search of yield and utility. Marvin Bertin, co-founder and CEO of Maestro, said, 'We are witnessing the convergence of TradFi and DeFi into a capital market fundamentally based on Bitcoin. For the first time since 2009, critical components for Bitcoin’s on-chain financial applications have been set, including exchanges, lending, and stablecoins. Bitcoin is evolving from a static reserve asset into a dynamic financial network that generates value.'
The report data also shows that over $5.5 billion TVL (52,000 BTC) is currently deployed across layers linked to Bitcoin, confirming genuine demand from developers and users. Stacks leads all layers in growth, adding about 2,000 BTC and more than doubling its TVL in the second quarter. Sidechains still hold the most BTC in BitcoinFi, but the structure is rapidly diversifying, with rollups and execution layers showing much promise.
Growth in Stablecoins and Layer-2 Solutions
According to the report, stablecoins are gradually finding a foothold in the Bitcoin ecosystem, with $860 million TVL representing a quarterly growth of 42.3%. Debt-position stablecoins backed by assets like USDa from Avalon ($559 million) have found a good start in BitcoinFi. On the other hand, the launch of high-yield stablecoins, such as Hermetica's 25% APY offering, underscores the demand for income-generating assets within BitcoinFi.
Regarding BitcoinFi funding in 2025, the report states that venture capital investment transactions in the first two quarters are no longer narrowly focused, with decentralized finance (DeFi), consumer, and custodial rights sectors accounting for the majority of investments.
