- Starknet has most audaciously unveiled its designs to settle upon the illustrious Bitcoin and Ethereum.
- A partner from the realm of Crypto VC is of the opinion that the DeFi potential of BTC is positively brimming with growth prospects.
In a most remarkable declaration, Starknet [STRK] aspires to unite and provide a settlement for both Bitcoin [BTC] and Ethereum [ETH], a feat most unprecedented should it come to fruition this very year. Part of their proclamation read,
“Starknet shall become the inaugural L2 to settle upon both Bitcoin & Ethereum, thereby bringing together the two most substantial blockchain ecosystems upon a singular layer, thus unlocking new DeFi opportunities and a veritable cornucopia of liquidity.”
Furthermore, this esteemed ETH L2 scaling solution has proclaimed itself as one of the most economical L2s, promising to deliver low-cost transactions that shall liberate the potential of BTC DeFi.
Consequently, it positions itself as the ‘execution layer’ for DeFi endeavors such as lending, borrowing, and staking—oh, the excitement! 🎉
BTC DeFi Potential
Pray, do take note that there exist other BTC scaling solutions, including Stacks, Lightning Network, BitVM, and the ever-mysterious BitcoinOS. As of the early days of 2025, the total value locked (TVL) in BTC DeFi was approximately 68K BTC, equating to a staggering $5.3 billion.
Indeed, the TVL reached an all-time high of 73.2K BTC in January 2025, which, for comparison’s sake, was a rather modest decline of 4K BTC in the first quarter of 2025.
When one gazes back to last December, the BTC DeFi TVL has burgeoned from 48K BTC to nearly 70K BTC, a most impressive growth of 43%. This has undoubtedly fortified investor confidence in BTC DeFi, which is currently under the sway of staking platforms such as Babylon, Lombard, SolvBTC, and the payment provider known as the Lightning Network.
Curiously, the burgeoning interest in BTC DeFi may very well expand the TVL even further—oh, the intrigue! 🤔
According to the esteemed Dan Held, a crypto VC at Asymmetric and a most ardent BTC DeFi investor, this sector possesses the most significant untapped potential and could very well explode to a market size of $300 trillion. He remarked,
“If DeFi could be unlocked on Bitcoin, it would be by far the most monumental opportunity ever to grace the realm of crypto.”
Regarding the Starknet update, Mr. Held deemed it ‘huge’ for the growth and intellectual engagement of BTC DeFi.
In a separate discourse with the Supply Shock podcast, he projected that the growth of BTC DeFi could indeed consume the market share of Ethereum and Solana.
“I surmise that this will significantly absorb market share from the others, albeit not entirely, thereby enhancing Bitcoin’s dominance.”
Meanwhile, Starknet intends to employ federated bridges to usher Bitcoin assets onto its platform whilst it awaits the OP_CAT, a soft fork designed to augment the smart contract capacity of the Bitcoin network.
It remains to be seen how this renaissance of DeFi shall trickle down to the value of BTC upon the price charts—oh, the suspense! 😏
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2025-03-12 22:19