# Bitcoin DeFi Ecosystem Continues Steady Growth Amid Mixed DeFi TVL Performance
The decentralized finance (DeFi) space has exhibited mixed performance, yet the Bitcoin DeFi ecosystem is experiencing steady growth. According to DeFiLlama, as of September 7, the total value locked (TVL) in digital assets stands at $95.876 billion.
Ethereum remains the market leader with a TVL of $50.121 billion, though it has faced a 16.35% decrease on a monthly basis, indicating a correction phase. Solana follows as the second-largest DeFi chain with a TVL of $7.229 billion, a significant 23.45% monthly drop, reflecting liquidity stability concerns.
# Bitcoin TVL Rises 7.2%, Overtakes Binance Smart Chain for 3rd Spot
Bitcoin’s TVL has notably increased, reaching $5.73 billion, securing the third position with a 7.2% weekly rise, surpassing Binance Smart Chain (BSC). This growth is attributed to the expansion of wrapped Bitcoin (wBTC), liquidity staking tokens (LST), and Layer 2 (L2) solutions.
Prominent projects in the Bitcoin DeFi ecosystem include Lombard’s LBTC, cbBTC, BoB, and Rootstock, which have all contributed to the increased usability and TVL of Bitcoin, pushing market expansion.
# LBTC and cbBTC Drive Bitcoin Utilization Growth
Lombard’s LBTC has converted Bitcoin into a productive asset, with a current TVL of approximately $2 billion. LBTC holds a 40.6% share in the overall Bitcoin liquidity staking token market, with roughly 62.49% being utilized across various DeFi protocols such as Aave, EtherFi, Pendle, and Morpho.
Coinbase’s cbBTC is also rapidly growing. Launched in September 2024 on Ethereum and Base, cbBTC has expanded to Solana and Arbitrum, with around 27.6k cbBTC currently in circulation and a total TVL of $2.6 billion. Distribution includes 61.8% on Ethereum and 28.2% on Base. Notably, Aerodome, the decentralized exchange (DEX) on Base, has seen trading volumes surpass $38.8 billion in ETH-cbBTC and USDC-cbBTC pools.
# BoB and Rootstock Advance Layer 2 Expansion
BoB, a Bitcoin-based Layer 2 (L2) project, has achieved a TVL of $226 million. The staking platform Solv Protocol plays a significant role, contributing around $13.79 million to the TVL. Despite market volatility, BoB recorded solid growth with 46,000 users and 1.4 million transactions monthly.
Rootstock, an EVM-compatible sidechain, enhances security through Bitcoin native mining. Maintaining a TVL of over $200 million, it leverages approximately 80% of Bitcoin’s hash power for merged mining. The ecosystem has consistently grown since hitting an all-time high TVL of $294 million. The governance token RIF is set to increase from 6.6 million units in November 2024 to 11.8 million units by February 2025, gaining community support.
The sustained increase in Bitcoin DeFi TVL is projected to continue, driven by the expansion of wrapped Bitcoin, liquidity staking, and Layer 2 solutions. The impressive growth of individual projects indicates a strengthened position for Bitcoin within the DeFi market.
