Monday January 13, 2025 ▪
4
min read ▪ by
Technical innovations, the rise of new protocols, and growing interest from institutions have laid the foundation for booming decentralized finance (DeFi). At the heart of this whirlwind, Bitcoin stands out thanks to its status as a “safe haven” in the sector. However, its potential remains underexploited in the DeFi space. By 2025, this dynamic could change. Experts agree: decentralized finance native to Bitcoin has all the assets to become a major phenomenon.
Bitcoin staking: colossal potential
In recent years, Bitcoin staking has attracted the attention of investors looking for attractive returns. Locking BTC to secure various protocols, especially Layer 2 (L2) solutions, opens the door to new forms of passive income.
According to some industry leaders, this market could represent several hundred billion dollars. This 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 in the spot market. Various estimates suggest it hovers around several billion dollars.
But the situation could change radically in 2025. Several protocols, such as Babylon or EigenLayer, facilitate staking by integrating mechanisms intended to attract institutional players. Experts are therefore betting 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 large funds is increasing.
In an often uncertain economic context, the promise of passive income backed by the solidity of the Bitcoin protocol constitutes 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 should have crossed the symbolic mark of $100,000, driven by an influx of institutional capital into spot ETFs.
This enthusiasm has demonstrated the interest of large investors in digital assets. In 2025, this movement should increase, particularly 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 the simultaneous use of tokens already staked as collateral on several platforms. This flexibility is a strong argument for funds seeking diversification. As new products – such as staked Bitcoin ETFs – emerge in Europe, market appetite continues to grow.
The support of these major investors is proving decisive in perpetuating Bitcoin’s native DeFi. Regulators are also becoming more attentive. Clear rules facilitate the deployment of institutional capital while protecting savers. As a result, 2025 could mark a crucial milestone in the democratization of BTC staking. Many initiatives are already in the works, and the interest of major economic players suggests massive adoption.
Ultimately, Bitcoin’s native decentralized finance finds itself at a crossroads. Staking, innovative protocols, institutional support: all these factors are converging towards an anticipated 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!
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Fascinated by bitcoin since 2017, Evariste has never stopped researching 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.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
