Bitcoin’s Decentralized Finance (Defi) Ecosystem experiences interest renewed venture capital (VC), and indicates more demand for the world’s first cryptocurrency because it gets useful as a yield-bearing assets.
Bitcoin Defi, or BTCFI, is a technological paradigm that wants to bring decentralized financing options to Bitcoin’s base layer.
According to a new report from Bitcoin Defi-infrastructure provider Maestro, shared with Cointelegraph, the BTCFI ecosystem received $ 175 million in VC financing over 32 rounds in the first half of 2025, with more and more capital flows into consumer apps and demand-driven products.
Capital turns to “usability and demand-driven products, while infrastructure betting ripping in the background,” said the report, adding that 20 out of 32 deals were aimed at deficiency, guardianship or consumer applications.
Bitcoin Defi Investment in H1, 2025. Source: Maestro
More VC financing can lead to more utility and revenue generating opportunities for Bitcoin (BTC), which stimulates more investor demand to the world’s first cryptocurrency.
Nevertheless, the data from Maestro show that although the financing of the first quarter reached $ 130 million, the activity delayed in the second quarter, with only $ 44 million raised over 12 deals, a decrease of 66%.
Source: Maestro
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Defi and Tradfi Convergeren in the BTCFI Ecosystem
According to Marvin Bertin, co-founder and CEO of Maestro, BTCFI and Bitcoin-mixed capital markets can become the convergence point of TradeFi and Defi.
“For the first time since 2009, the critical documents for financial apps are present on Bitcoin, which include exchanges, loans and stablecoins,” said Bertin Cointelegraph, adding:
“Bitcoin is evolving from a static reserve company to a dynamic, productive financial network.”
Other viewers in the industry also recorded an acceleration in the growing relationship between Defi and Tradfi. Improved infrastructure and growing cooperation between the two industries will solve the artificial boundaries between the two sectors faster than much expected, said Nelli Zaltsman, head of blockchain payments innovation at JPMorgan’s Kinexys.
Related: Bitcoin Defi Surge can stimulate BTC question and adoption – Binance
BTCFI saw a more than 22-fold increase in the value in 2024, because the total value locked (TVL) increased by more than 2,000%, driven by infrastructure developments and rising Bitcoin prices, reported on January 17.
Bitcoin TVL, 2024 Chart. Source: Defillama
Babylon was seen as an important chance for Bitcoin-based Defi, thanks to the introduction of Bitcoin resident for the first time in crypto history.
The interest in building Defi possibilities on the Bitcoin network has grown since the Bitcoin Halving from 2024, which introduced the Runes protocol, the first fungible token -Standard on the Bitcoin -Blockchain.
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