State of Bitcoin Staking
Bitcoin: The Largest Cryptocurrency
Bitcoin represents over 50% of the total cryptocurrency market, valued at over $1.3 trillion. Despite its dominance, over $1 trillion worth of BTC remains idle, offering no native yield opportunities.
Challenges in Bitcoin Staking
No Native Yield: Unlike ETH, which has a robust staking ecosystem, Bitcoin lacks high-quality yield solutions. For example:
~28% of ETH’s total supply is staked (~34M/120M).
~29% of ETH staking is managed through Lido (~10M/34M).
Solv would only need 2.5% of BTC to achieve a similar TVL as Lido.
Fragmented BTC Liquidity in DeFi:
Bitcoin liquidity is spread thin across L1s, ETH L2s, and BTC L2s.
Over 80+ projects are scaling Bitcoin, competing for liquidity.
Solv has staked over 19,000 BTC, surpassing BTC holdings on multiple chains and Bitcoin ETFs.
Limited DeFi Integrations:
ETH, ETH derivatives, and stablecoins dominate DeFi collateral use.
Solv is actively integrating its liquid BTC yield tokens with multiple chains and protocols to build a thriving BTCFi ecosystem.
Market Trends: Bitcoin Season
Over $100 million was raised by Bitcoin-related projects in H1 2024, signaling growing interest in Bitcoin-native DeFi.
Innovations like BRC-20s, Ordinals, and Runes have speculative demand, while OP_CAT adds more functionality to Bitcoin.
Proven Demand
In under four months, Solv staked over 19,000 BTC, surpassing BTC holdings on some chains and ETFs.
Solv Bitcoin holdings rank:
5th among chains.
7th among Bitcoin ETFs and Ethereum staking solutions.
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