New data from market analyst Artemis today reported interesting developments within the BTCFi sector, with multiple protocols showing varying market performance. The data shows that Starknet is currently leading in BTCFi net inflows, strengthening its position in the industry, while several major on-chain platforms such as $BNB Chain and many others experienced massive capital outflows.
The BTCFi sector, also known as the Bitcoin DeFi landscape, includes protocols and applications that offer DeFi services such as lending, staking, trading and yield generation on the Bitcoin blockchain, without the need for intermediaries. With recent technological developments such as the Taproot upgrade in 2021, Bitcoin on DeFi has become an on-chain innovator, unlocking massive amounts of on-chain liquidity that $BTC represents.
interesting. pic.twitter.com/aFtJCbYMZ5
— Starknet (Privacy x BTCFi arc) 🥷 (@Starknet) March 4, 2026
BTCFi Capital flow and analysis of on-chain activities
According to the data shared by Artemis today, Starknet, a Layer-2 scaling protocol, has emerged as the top DeFi platform leading the BTCFi story and attracting steady fund inflows and customers. As reported in the data, Starknet recorded a whopping $400 million in BTCFI capital inflows over the past six months, making it the top platform that recorded the largest Bitcoin DeFi capital inflows during the period. The record shows increasing user confidence in Starknet’s BTCFi offering. The data further showed a massive increase in Starkent’s TVL, rising from a low of $133.38 million in the past six months to the current level of $286.39 million, highlighting increasing market activity and customer participation.
Other top platforms that have recorded massive capital inflows from BTCFI over the past six months include Base, Ink, Solana, Injective, Polygon, EdgeX, WorldChain, Bitcoin, Sei Network and Arbitrum, as illustrated in the data.
The rise in Bitcoin DeFi money inflows to these platforms is driven by institutional inflows as more and more institutions look to BTCFI strategies. The development explains why these platforms have witnessed a steady growth of new customers and applications deployed to power Bitcoin DeFi lending, DEX activity, staking and yield farming. This trend indicates that both institutional investors and retail clients are leveraging DeFi platforms to generate returns from their platforms $BTC own or borrow stablecoins for it.
Other notable market performers
In contrast, the Artemis data identified OP Mainnet, SUI, Linea, Avalanche C-Chain, Berachain, $BNB Chain, Ethereum, Unichain, and Hyperliquid are the protocols that have experienced significant net BTCFI outflows over the past six months. Hyperliquid experienced the largest outflows worth $500 million, putting it at the bottom of the list, as explained in the data. This development shows a rotation of money from overvalued protocols to innovative chains.