The financialization wave of Bitcoin is like a gentle morning breeze, quietly sweeping through the global crypto market. While its foundation as a store of value is solid, the potential of BTCFi (Bitcoin decentralized finance) resembles an uncharted nautical map, awaiting navigation by technology. Bitlayer acts like a powerful growth engine, leading the Bitcoin ecosystem toward prosperous new voyages with its leading deployment of BitVM Bridge and developer support from xCreatorPad, injecting forward-looking momentum into the Web3 world.
The growth potential of BTCFi comes from the enormous capital reserves of Bitcoin and the increasingly diverse demand. As of August 2025, the proportion of BTC held by institutions has risen to 23%, including Franklin Templeton's BTC ETF, while retail holders are seeking to unlock asset value through DeFi tools.
Bitlayer accurately captures this trend, with its Layer 2 solutions enhancing transaction throughput to thousands of TPS through EVM compatibility, allowing developers to pay gas fees with BTC and build diversified applications ranging from lending to NFT markets. Its YBTC (1:1 pegged to BTC) in collaboration with Kamino Finance offers annual returns of 6-9%, attracting over 1.6 million users and igniting market demand for BTCFi. The growth engine of Bitlayer also benefits from the industry-leading position of its BitVM Bridge.
As one of the earliest mainnet deployment projects based on BitVM, BitVM Bridge eliminates the centralization risks of traditional bridging through zero-knowledge proofs (ZKP) and trust-minimized design. As of August 2025, the TVL has surpassed $230 million, with a 25% increase in monthly active addresses. The xCreatorPad platform distributed 5.2 million BTR rewards through the Booster Campaign in August 2025, incentivizing developers to submit BTCFi projects, with the top 50 receiving an additional 50K BTR, and the ecological trading volume has reached 130 million transactions.
Collaboration with Layer 1 solutions such as Sui, Base, and Arbitrum, as well as mining pools like Antpool and F2Pool, has expanded liquidity and computing power, further driving growth. Despite the strong engine power, challenges cannot be ignored. The cross-chain security of BitVM Bridge requires continuous auditing, and the initial incentives of xCreatorPad may not be sufficient to attract all developers.
If Bitlayer optimizes bridging efficiency and expands community participation, its journey may sail towards a broader BTCFi ocean. This engine opens up a growth voyage for the Bitcoin ecosystem. Each thrust is a sail towards the potential of Web3, and we look forward to its magnificent destination together.
