Renewed VC Interest in Bitcoin's DeFi Ecosystem

Bitcoin's decentralized finance (DeFi) sector is witnessing a resurgence in venture capital (VC) interest, indicating a growing demand for the cryptocurrency as it evolves into a yield-generating asset. Bitcoin DeFi, or BTCFi, aims to integrate DeFi functionalities into Bitcoin's foundational layer. A recent report from Maestro, a Bitcoin DeFi infrastructure provider, reveals that BTCFi attracted $175 million in VC funding across 32 rounds in the first half of 2025, with a notable focus on consumer applications and demand-driven products. The report highlights a shift towards usability, with 20 of the 32 deals centered on DeFi, custody, or consumer apps. However, funding activity slowed in the second quarter, dropping to $44 million from $130 million in the first quarter. Experts suggest that BTCFi could bridge traditional finance (TradFi) and DeFi, as essential components for on-chain financial applications on Bitcoin are now available. The growing synergy between DeFi and TradFi is expected to accelerate, dissolving existing barriers. Read more AI-generated news on: https://app.chaingpt.org/news