The amount locked in Bitcoin based on decentralized financial (BTCFI) has risen more than 2,700% last year, which potentially modify Bitcoin from a passive store value to a productivity, asset-bearing asset, according to new research from Binance.
Btcf is a new technological paradigm aimed at bringing decentralized financial capabilities to the base layer of Bitcoin. It is one of the fastest growing crypto sectors, reaching a total amount locked (TVL) of over $ 8.6 billion.
BTCFI’s growing value, “along with potential reductions in interest rate, can boost positive emotions for Bitcoin in the medium and lasting,” Binance Research wrote in a report shared with Cointelegraph.
Bitcoin defi, total amount locked, 2025 chart. Source: Research in Binance
If the BTCFI sector sector continues, it can open “new opportunities for Bitcoin holders to produce yield by lending, providing liquidity, and other defi mechanisms,” said a Binance spokesman Cointelegraph, addition:
“It can contribute to a move to how BTC is noted-from a passive store-of-value to a productive on-chain asset. While it is too early to determine the full effect, emerging cases of use can support greater adoption and, over time, strengthen demand.”
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Interest at BTCFI advanced after April 2024’s Bitcoin halvingintroducing the runes protocol, the first fungible token standard in the Bitcoin blockchain.
Many bitcoin-native projects have helped to speed up the trend.
Babylon introduced Bitcoin (Btc) Staking For the first time in the history of the network, which enables holders to earn passive income from their property.
Hermetica launched the First bitcoin-back synthetic dollarsUSDH, who has been debuting a 25% yield for investors.
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BTC Long-Term Holders will continue with Bitcoin accumulation
Long-term Bitcoin holders have restarted their BTC accumulation following the BTC supply held by long-term holders lowered in February.
The BTC supply held by long-term owners. Source: Glassnode, Binance Research
Long -term holders are purses holding BTC for at least 155 days. Growing accumulation from long -term holders reduced the available Bitcoin supply to exchanges, which could lead to a Shock-driven supply Price rally.
The growing increase of accumulation in long-term holders is in line with a “significant period of adoption for Bitcoin,” due to the establishment of the US strategic Bitcoin reserves and the growing interest of the institutional, according to a research report.
Source: Margo Martin
On March 7, US president Donald Trump signed an executive order to create a strategic bitcoin reserve using the BTC obtained from criminal government cases.
Trump signed the historic order of the Bitcoin reserve a day ahead of the halting -Host of First White House Crypto SummitWhich one Received a mix -hal reactions From the crypto community.
https://www.youtube.com/watch?v=puxcqdo30Jo
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