BTCFi Sector Surges 2700% in a Year, Potentially Transforming Bitcoin into Yield-Bearing Asset

Binance Research reported that the value locked in Bitcoin-based decentralized finance (BTCFi) has surged by over 2,700% in the last year, potentially shifting Bitcoin from a passive store of value to a productive, yield-bearing asset. This rapidly growing crypto sector has reached a total value locked (TVL) of over $8.6 billion. According to the report shared on Cointelegraph, this growth, combined with potential interest rate cuts, could reinforce positive sentiment for Bitcoin in the medium and long term. Notably, interest in BTCFi increased after the Bitcoin halving in April 2024, which introduced the Runes protocol. On March 7, US President Donald Trump signed an executive order to create a strategic Bitcoin reserve using BTC seized from government criminal cases.