Decentralized finance on Bitcoin showed remarkable growth in 2024, becoming a significant part of the financial landscape.
A Turning Year for DeFi on Bitcoin
The decentralized finance sector on Bitcoin underwent significant changes in 2024. The Babylon platform emerged as a leader, capturing more than 80% of the total value locked (TVL). Launched in August 2024 and followed by phase 2 deployment in January 2025, Babylon experienced a 222% surge in TVL, reaching $5.2 billion. The implementation of the Runes protocol post-halving strengthened Bitcoin’s technical infrastructure, providing a standard for fungible tokens and paving the way for a new era of financial innovation on the network.
The Catalytic Effect of ETFs and the Rise of BTC
The historic approval of spot Bitcoin ETFs in the United States was a key growth factor. BlackRock became the largest asset manager with 50.3% of assets, followed by Fidelity with 23.6%. BTC hit a price peak of over $100,000 in December 2024. Donald Trump's victory in the US presidential election boosted institutional investors' confidence, contributing to capital inflow into Bitcoin's native DeFi applications.
Conclusion
In 2024, decentralized finance on Bitcoin saw an incredible trajectory. Financial infrastructure enhancement and technological advances have made BTCFi a significant player in the cryptocurrency sphere.
These events marked a turning point for the development of decentralized finance on Bitcoin, demonstrating maturity and sustained ecosystem growth.
