Bitcoin DeFi Total Value Locked Increases 2000% to $6.5 Billion
Bitcoin's decentralized finance (BTCFi) sector experienced significant growth in 2024, driven by the Bitcoin price surge and the halving event in April. Key points include:
- Total value locked (TVL) increased from $307 million to $6.5 billion, marking a 2000% growth.
- This represents a 22-fold increase, highlighting advancements in BTCFi infrastructure and investor confidence.
- Babylon platform accounted for 80% of the total BTCFi TVL, with its mainnet launch in August 2024 contributing to its growth.
- Babylon’s TVL rose 222%, from $1.61 billion to over $5.2 billion within two months.
- Spot Bitcoin ETFs launched in January 2024 attracted institutional demand, resulting in a 121% increase in Bitcoin's price.
- Increased capital flow into Bitcoin-native DeFi applications is linked to the rising valuation of Bitcoin.
The 2024 halving event played a crucial role in enhancing DeFi capabilities on the Bitcoin network.