The Situation of Bitcoin DeFi and Its Role@BitlayerLabs
During the period of 2024 – 2025, the Bitcoin DeFi ecosystem is witnessing explosive growth. The total value locked (TVL) of DeFi protocols on Bitcoin has increased from 304 million USD at the beginning of 2024 to 7.1 billion USD by mid-2025, nearly a 20-fold increase. Concurrently, a series of Layer 2 solutions have emerged to enhance the performance and features of the Bitcoin network, which was previously regarded only as 'digital gold.'
Among them, quickly stands out by accounting for nearly 19.5% of the total Layer 2 Bitcoin TVL, only behind BSquared. The strength of Bitlayer lies in using a Rollup architecture combined with the Bitcoin Virtual Machine (BitVM), enabling the deployment of Turing-complete smart contracts directly on Bitcoin without altering the original protocol.
Bitlayer brings four core values:
Unlocking BTC liquidity to create true on-chain yield.
Scaling up, reducing fees, with costs of only about 0.1 USD/transaction.
Supporting smart contracts, paving the way for DEX, Lending, Stablecoin, derivatives.
Trust-minimized security, the BitVM Bridge only requires one honest party.
Currently, Bitlayer has more than 200 active dApps.
With the combination of Bitcoin's maximum security and Ethereum's flexibility, is becoming a launchpad for the BTCFi trend, taking Bitcoin beyond its role as 'digital gold' to become the center of the global decentralized finance.
