The State of BitcoinFi in Q2 2025: Research

Maestro, a number one Bitcoin Finance (BitcoinFi) infrastructure supplier, has revealed the “State of BitcoinFi” report, which brings ahead an ecosystem-wide evaluation on its monetary purposes, infrastructure, and ongoing growth from a retailer of worth to empowering conventional finance’s (TradFi) on-chain transition.

Maestro anticipates volumes to maintain surging as enterprises proceed to stack BTC of their treasuries and extra idle cash are activated for yield and additional makes use of.

“We’re witnessing the convergence of TradFi and DeFi right into a Bitcoin‑denominated capital market,” mentioned Marvin Bertin, Co‑Founder and CEO of Maestro.“For the primary time since 2009, the vital items for on‑chain monetary apps on Bitcoin are in place, spanning exchanges, lending, and stablecoins. Bitcoin is evolving from a static reserve asset right into a dynamic, productive monetary community.”

Staking And Lending

With over 68,500 bitcoin in TVL ($7.39 billion), staking has turn into essentially the most broadly used utility in BitcoinFi. Re-staking has additionally been steadily on the rise, with $3.32 billion BTC being re-staked, which means the area of interest now secures over $10 billion by means of yield-bearing protocols.

Babylon presently leads in scale ($4.79B), however Solv, Lombard, and CoreDAO are advancing the frontier of liquid staking tokens (LSTs), restaking methods, and dual-token safety fashions. Bitcoin-native lending is being spearheaded by Liquidium, with over $500M in quantity.

One other type of staking gaining traction is twin staking, launched by CoreDAO, with over $615M of BTC staked. The incentives embrace block rewards from their native CORE tokens and a share of transaction charges, that are distributed to stakers and validators.

Just a few challenges stay, as many staking returns don’t align with treasury charges, with yield and liquidity being dispersed throughout totally different chains and protocols. It’s to be seen whether or not the sturdiness of BTC-secured networks can proceed to ship sustainable rewards.

Programmability Layers

Bitcoin scaling and Layer 2 (L2) layers have $5.52 billion (52,000 cash) in complete worth locked (TVL), hinting at developer and consumer demand pushed by native good contracts, yield, and asset allocation, while preserving self-custody, and having settlement ensures.

The Stacks layer is main in development, greater than doubling its TVL for Q2 and including roughly 2000 BTC. Sidechains nonetheless maintain many of the asset in BitcoinFi, however the structure is diversifying, with rollups and execution layers wanting promising.

Bitcoin’s legacy constraint is slowly peeling away, as the bottom layer was by no means meant for programmability. Whereas Ethereum has over $116 billion in DeFi TVL, BTC-aligned infrastructure stays lagging at simply over $5.5B in TVL throughout scaling layers. Nevertheless, new sidechains, rollups, and numerous environments proceed to emerge, pushing the biggest asset per market cap past its passive store-of-value function.

Metaprotocols

Runes, Ordinals, and BRC-20 tokens accounted for 40.6% of all Bitcoin transactions within the first half of 2025, with BRC-20 quantity reaching $128 million.

Following a pullback final 12 months, Ordinals skilled a powerful restoration, with over 80 million inscriptions by mid-2025, producing 6,940 BTC (~$681M) in charges. Runes are rebounding from a pointy decline in minting and buying and selling quantity on the finish of 2024.

Stablecoins

With $860 million in TVL (over 42% Quarter-over-Quarter), this asset class has come to prevalence inside the Bitcoin ecosystem, because of maturing L2s and rising demand for native primitives.

CDP-based (Collateralized Debt Place) stablecoins, similar to Avalon’s USDa ($559M), have seen early traction in BitcoinFi. Excessive-yield stablecoins, similar to Hermetica’s 25% APY providing, level in the direction of a requirement for capital-generating property.

Just a few hurdles stay, with fragmented liquidity (the lack to conclude a transaction with a number of contributors resulting from an absence of clearing preparations) being considered one of them, because it limits market depth throughout chains and L2s.

The oracle design stays a difficulty for CDPs (collateralized debt positions), and composability tradeoffs introduce rigidity between efficiency and decentralization.

Enterprise Funding

After a interval of declining curiosity, BitcoinFi funding has surged to $175 million throughout 32 rounds within the first half of 2025, with the actions targeted not solely on infrastructure. In the identical half of the 12 months, out of the 32 offers, 20 have been focused on DeFi, apps, and custody.

Capital is being shifted in the direction of usability and merchandise, with infrastructure now on the again seat. 

The start of the 12 months noticed main funding companies, similar to Pantera Capital, Founders Fund, and Customary Crypto, amongst others, validating the area of interest as a well-liked frontier within the cryptocurrency universe. These notable offers point out a potent mixture of infrastructure depth and application-layer traction, with investor curiosity coming from each conventional and crypto-native companies.