- Babylon secured $5.2 billion TVL, showcasing its influence as a leading Bitcoin-native staking platform in DeFi.
- Institutional support surged with U.S. Bitcoin spot ETFs, boosting confidence and driving Bitcoin’s price over $100,000.
Bitcoin-based decentralized finance (BTCFi) saw explosive growth in 2024, redefining its role in the cryptocurrency ecosystem.
Driven by the April halving, historic price surges, and infrastructure advancements, the sector’s total value locked (TVL) surged from $307 million in January to over $6.5 billion by December—a staggering 2,000% increase.
Since its mainnet launch in August, Babylon’s TVL soared to $5.2 billion by the year’s end. This achievement underscored the platform’s groundbreaking contributions to BTCFi, solidifying its role as a cornerstone in the sector.
“The first phase of their mainnet was launched in August 2024, and their stage 2 testnet in Jan 2025. Given this is a major BTC DeFi dApp and in the process of launching, many users have likely been deploying capital here to use it and potentially qualify for an airdrop.”
The launch of the Runes protocol, which enabled fungible tokens on Bitcoin, further broadened its decentralized finance capabilities, creating new opportunities for growth and adoption.
Institutional involvement further bolstered BTCFi’s growth
With giants like BlackRock and Fidelity managing the lion’s share of ETF assets, Bitcoin’s price surged to over $100,000 in December, coinciding with Donald Trump’s presidential win.
These combined factors solidified Bitcoin’s position as more than a store of value. BTCFi has now established itself as a growing pillar in the broader financial ecosystem, demonstrating the expanding utility of the Bitcoin network for decentralized applications and institutional adoption.
Bitcoin (BTC) is currently trading at $103,482.38, reflecting a 1.74% increase in the last 24 hours. Its market capitalization stands at $2.05 trillion, with a 24-hour trading volume of $60.68 billion, marking a 6.03% increase. The circulating supply is 19.81 million BTC, with a fixed maximum supply of 21 million BTC.
From a technical standpoint, BTC is testing resistance at $104,000 – $106,000. If it breaks above this level, the next target could be $110,000 – $115,000. However, failure to maintain this momentum may lead to a retracement toward $100,000, with strong support at $98,000.
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