- Bitcoin’s DeFi activity has surged after the TVL hit an ATH and flipped that of BNB Chain.
- This rise co mes amid demand for restaking on the Babylon Bitcoin staking protocol.
Bitcoin [BTC] has recorded a surge in decentralized finance (DeFi) activity, with its Total Value Locked (TVL) surging to an all-time high of $6.9 billion per DeFiLlama. This growth has seen Bitcoin surpass BNB Chain to become the fourth-largest blockchain by this metric.
Bitcoin’s DeFi activity started to rise in late October as demand for BTC yield grew. DeFiLlama showed that on 21st October, the TVL was below $1 billion, indicating that it has surged by more than six times in under two months.
Source: DeFiLlama
The rising TVL is not only because of BTC’s price appreciation but also an increase in the coins locked on the network. These assets have increased from 34,980 BTC to 66,040 BTC at press time.
So, what is driving the boom in DeFi activity on the blockchain?
Rising demand for restaking
The main factor behind the rising metric is the Babylon staking platform. This platform accounts for $5.6 billion of the total TVL on Bitcoin.
According to the Babylon staking dashboard, 128,000 stakers have locked more than 54,000 BTC on the platform, showing rising demand for Bitcoin yield.
