The State of BitcoinFi in Q2 2025: Research

Key Points

1. BitcoinFi's TVL exceeds $7.39 billion, with staking as the most widely used application, and re-staking adding another $3.32 billion, totaling over $10 billion in yield-bearing protocols.

2. Babylon leads in scale with $4.79B in staking, while Solv, Lombard, and CoreDAO advance liquid staking tokens (LSTs), restaking strategies, and dual-token security models.

3. Bitcoin-native lending, led by Liquidium, has surpassed $500M in volume, and dual staking introduced by CoreDAO has attracted over $615M of BTC staked.

4. Bitcoin scaling and Layer 2 (L2) layers have $5.52 billion in TVL, with Stacks leading in growth, more than doubling its TVL in Q2.

5. Runes, Ordinals, and BRC-20 tokens accounted for 40.6% of all Bitcoin transactions in the first half of 2025, with BRC-20 volume reaching $128M and Ordinals generating 6,940 BTC (~$681M) in fees.

6. CDP-based stablecoins like Avalon’s USDa ($559M) are gaining traction, and high-yield stablecoins like Hermetica’s 25% APY offering indicate demand for capital-generating assets.

7. BitcoinFi funding surged to $175 million across 32 rounds in the first half of 2025, with 20 deals focused on DeFi, apps, and custody.