Bitcoin’s Financial Stack is Maturing Quickly
The latest data from Maestro suggests that Bitcoin’s financial stack is maturing quickly. With $7.39 billion already staked and another $3.32 billion in restaking, the narrative of passive HODLing is steadily being replaced by active, on-chain capital deployment.
A New Era of BitcoinFi
According to Maestro’s State of BitcoinFi report shared with bitpulse on August 7, the BitcoinFi ecosystem has surpassed $10 billion in total value locked, driven primarily by staking and lending protocols. This report, based on protocol-level data and market analysis from H1 2025, marks the first comprehensive analysis of Bitcoin’s transition from a static store of value to a dynamic financial network.
Staking and Lending Take Center Stage
The report identifies $7.39 billion in BTC staked across yield-bearing platforms and an additional $3.32 billion engaged in restaking strategies, with Babylon, Liquidium, and Stacks emerging as early leaders in their respective niches. Babylon leads the staking race with $4.79 billion in TVL, but innovators like Solv, Lombard, and CoreDAO are pushing boundaries with liquid staking tokens and dual-token models that enhance capital efficiency.
Bitcoin-Native Lending on the Rise
Meanwhile, Liquidium has carved out an early lead in Bitcoin-native lending, processing over $500 million in volume as demand for BTC-backed loans grows. This trend is a clear indication that Bitcoin is evolving from a static reserve asset into a dynamic, productive financial network.
Convergence of TradFi and DeFi
“We’re witnessing the convergence of TradFi and DeFi into a Bitcoin-denominated capital market,” Marvin Bertin, Co-Founder and CEO of Maestro, said. “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 Rise of Bitcoin’s Programmability Layer
This shift is being accelerated by Bitcoin’s growing programmability layer. Scaling solutions, once dismissed as speculative experiments, now hold $5.52 billion in TVL—a clear signal that developers and users are embracing Bitcoin layer-2s for smart contracts and asset issuance without sacrificing self-custody. Stacks, in particular, has emerged as a standout, more than doubling its TVL in Q2 with approximately 2,000 BTC added.
Beyond DeFi: Bitcoin’s Metaprotocols
Beyond DeFi, Bitcoin’s metaprotocols are quietly reshaping network activity. Maestro said in the report that Runes, Ordinals, and BRC-20s accounted for 40.6% of all Bitcoin transactions in H1 2025, with BRC-20 daily volume reaching $128 million.
Ordinals, after a slump in 2024, have staged a strong comeback, surpassing 80 million inscriptions and generating $681 million in fees. Even Runes, despite a late 2024 decline, saw renewed interest in early 2025, suggesting that Bitcoin’s cultural and financial use cases are expanding in tandem.
Stablecoins on the Rise
Stablecoins, long considered Ethereum’s domain, are also gaining ground in BitcoinFi. With $860 million in TVL, a 42.3% quarterly increase, projects like Avalon’s USDa are demonstrating that Bitcoin-native stablecoins can thrive, particularly when paired with high-yield offerings. This growth reflects a broader trend: Bitcoin is no longer just a base layer for settlements but a full-stack financial ecosystem.
Venture Capital Takes Notice
Meanwhile, venture capital is taking notice. After a lull in funding, BitcoinFi startups raised $175 million across 32 deals in H1 2025, with 20 of those rounds targeting DeFi, custody, or consumer apps rather than pure infrastructure, Maestro said.