BitcoinFi Booms: $7.39B in BTC Locked as Staking Takes Center Stage

Staking has become a central component of BitcoinFi, with over 68,500 bitcoins locked, amounting to a total value locked (TVL) of $7.39 billion. Three protocols—Babylon, Solv, and Lombard—dominate the market, controlling about 85% of the TVL.

Staking Dominance and Market Concentration

Staking has emerged as the “core engine of BitcoinFi,” locking up more than 68,500 bitcoins (BTC) for a total value locked (TVL) of $7.39 billion, according to a new study from Maestro. The report found that just three protocols—Babylon, Solv and Lombard—dominate the market, controlling about 85% of the total TVL. Babylon alone accounts for more than 47% of the total, with a TVL of $4.79 billion, followed by Solv at $1.96 billion and Lombard at $1.78 billion.

Lombard, meanwhile, leads in the restaking category with 14,100 BTC, followed by Solv with 7,000 BTC. Overall, restaked TVL topped $4.46 billion as of June 30, 2025. Maestro’s “State of BitcoinFi” report also highlights the emergence of dual staking as a model with growing interest, noting that CoreDAO’s dual stake alone accounted for $615 million worth of staked BTC.

Although staking is a core engine of BitcoinFi, the report points to ongoing challenges, including below-market yields, fragmented composability and unproven durability.

Reflecting on the continued growth of BitcoinFi, Maestro said it expects volumes to surge as more institutions add BTC to their balance sheets and custodians activate idle BTC in search of yield and utility. Marvin Bertin, co-founder and CEO of Maestro, said, “We’re witnessing the convergence of TradFi and DeFi into a Bitcoin-denominated capital market. For the first time since 2009, the critical pieces for on-chain financial apps on Bitcoin are in place, spanning exchanges, lending, and stablecoins. Bitcoin is evolving from a static reserve asset into a dynamic, productive financial network.”

The report data also shows that more than $5.5 billion in TVL (52,000 BTC) is now deployed across Bitcoin-aligned layers, confirming real developer and user demand. Stacks led all layers in growth, adding approximately 2,000 BTC and more than doubling its TVL in the second quarter. Sidechains still hold the most BTC in BitcoinFi, but the architecture is rapidly diversifying, with rollups and execution layers looking promising.

Growth in Stablecoins and Layer-2 Solutions

According to the report, stablecoins are slowly gaining a foothold in the Bitcoin ecosystem, with $860 million in TVL representing a quarter-over-quarter increase of 42.3%. Collateralized debt position stablecoins like Avalon’s USDa ($559 million) have found early traction in BitcoinFi. On the other hand, the launch of high-yield stablecoins, such as Hermetica’s 25% APY offering, underscores the demand for income-generating assets within BitcoinFi.

In terms of BitcoinFi funding in 2025, the report notes that venture deals in the first two quarters were no longer narrowly focused, with decentralized finance (DeFi), consumer and custody sectors taking the bulk of investments.