Why 2025 could propel Bitcoin-native decentralized finance

Technical innovations, the rise of new protocols and the growing interest of institutions have laid the foundations for a booming decentralized finance (DeFi). At the heart of this whirlwind, Bitcoin is doing well thanks to its status as a “safe bet” in the sector. However, its potential still remains underexploited in the DeFi domain. In 2025, this dynamic could change. Experts are unanimous: decentralized finance native to bitcoin has everything to become a major phenomenon.

Bitcoin staking: colossal potential

In recent years, bitcoin staking has attracted the attention of investors looking for attractive returns. Blocking your BTC to secure different protocols, including layer 2 (L2) solutions, opens the door to new forms of passive income.

According to some industry executives, this market could represent several hundred billion dollars. Such enthusiasm can be explained by the historical security of the Bitcoin network and the trust it inspires in both individuals and institutions.

Currently, the total value locked (TVL) linked to bitcoin staking remains modest compared to the volumes traded on the spot market. According to various estimates, it is close to several billion dollars.

But the situation could radically change in 2025. Several protocols, such as Babylon or EigenLayer, facilitate staking by integrating mechanisms designed to appeal to institutional players. Experts are therefore counting on exponential growth in TVL, potentially multiplied by 300.

This expansion of bitcoin staking is based on two pillars. On the one hand, the demand for stable yields, even at 3%, remains very high. On the other hand, recognition by regulators and big funds is increasing.

In a sometimes uncertain economic context, the promise of passive income backed by the solidity of the Bitcoin protocol is a convincing argument. This is precisely what could make BTC staking one of the pillars of DeFi in 2025.

Institutional adoption: the catalyst for 2025

The arrival of institutions in the Bitcoin ecosystem has already begun. In 2024, Bitcoin would have crossed the symbolic mark of $100,000, driven by an influx of institutional capital into spot ETFs.

This excitement has demonstrated the interest of large investors in digital assets. In 2025, this movement should amplify, especially if financial products linked to BTC staking multiply in Europe, or even in the United States.

The legitimacy acquired by Bitcoin encourages big names in finance to explore its DeFi potential in more depth. By offering re-staking mechanisms, some protocols allow already staked tokens to be used as collateral on multiple platforms at once. This flexibility is a strong argument for funds seeking diversification. As new products – like Bitcoin staked ETFs – emerge in Europe, the market’s appetite continues to grow.

The support of these major investors is proving decisive in perpetuating bitcoin’s native DeFi. Regulators, too, are becoming more attentive. Clear rules facilitate the deployment of institutional capital while protecting savers. Result: 2025 could mark a crucial step in the democratization of BTC staking. Many initiatives are already in the works, and the interest of major economic players suggests massive adoption.

Ultimately, decentralized finance native to bitcoin finds itself at a crossroads. Staking, innovative protocols, institutional support: all these factors are converging towards an expected upheaval in 2025. For cryptocurrency enthusiasts, this is a unique opportunity to ride the wave. In fact, 56% of financial advisors say they are attracted to crypto after Trump!

Evans S.

Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.