Comment to be attributed to Dom Harz, Co-Founder of BOB:

Bitcoin DeFi is performing better than many expected and Bitcoin’s TVL has increased by more than two thousand percent in the past year. While there is a persistent focus on the Trump administration’s latest crypto announcements and the implications for financial markets, Bitcoin DeFi is continuing to thrive in the background.

I also suspect Bitcoin DeFi’s strong performance will continue. Currently, DeFi TVL accounts for 30 percent of ETH’s market cap. But for BTC it accounts for around 0.3 percent showing the immense potential for Bitcoin DeFi to grow. Watch this space, because it’s only up from here.

Since Babylon’s inception, there have been notable efforts to demonstrate Bitcoin’s value beyond speculative investing. Staking in particular, has opened up novel value propositions for the broader ecosystem, enabling users to mobilise their Bitcoin to help secure Layer-2s and PoS chains. This year is set to see continued TVL growth, with most big Bitcoin projects launching on mainnet. The combination of Babylon and BitVM alone will bring Bitcoin security for on-ramping and all transactions, paving the way for retail and institutional liquidity to participate in DeFi and earn the yield they are so hungry for. In addition, both BitVM and Bitcoin staking are novel technologies that will serve as strong foundational primitives for future innovation to build upon, powering further growth.

Ethereum has been the go-to for DeFi, but there are now fears that it is falling behind. Ethereum, a more volatile and less market-resilient asset, has failed to rebrand as a real-world utility, resulting in insufficient institutional support compared to Bitcoin. Continued innovation, such as new layer 2 solutions and staking, has benefited Bitcoin’s compatibility with DeFi and will allow Bitcoin DeFi to soar to new heights.