- Starknet has unveiled plans to decide on Bitcoin and Ethereum.
- Crypto VC accomplice believes that BTC DeFi has a large progress potential.
Starknet [STRK] seeks to unify and supply settlement on Bitcoin [BTC] and Ethereum [ETH], a primary of its form if achieved this 12 months. A part of its assertion read,
“Starknet will change into the primary L2 to decide on each Bitcoin & Ethereum, bringing the 2 largest blockchain ecosystems on a single layer, unlocking new DeFi alternatives and better liquidity.”
The ETH L2 scaling resolution added that it is likely one of the most cost-effective L2s and would deliver low-cost transactions to unlock BTC DeFi potential.
Consequently, it might place itself as BTC’s ‘execution layer’ for DeFi actions like lending, borrowing, staking, and so forth.
BTC DeFi potential
Observe, nevertheless, that there are different BTC scaling options, together with Stacks, Lightning Community, BitVM, and BitcoinOS. As of early 2025, BTC TVL (whole worth locked) on its DeFi was about 68K BTC or $5.3B.
The TVL hit an all-time excessive of 73.2K BTC in January 2025. For comparability, that was a comparatively small 4K BTC drop in Q1 2025.
When zoomed out from final December, BTC DeFI TVL grew from 48K BTC to just about 70K BTC, translating to 43% progress.
It bolstered investor confidence in BTC DeFi, which was at present dominated by staking platforms Babylon, Lombard, SolvBTC, and cost supplier Lightning Community.
Supply: DeFiLlama
Apparently, the elevated curiosity in BTC DeFi may increase the TVL even additional.
Based on Dan Held, a crypto VC at Uneven and BTC DeFi investor, the sector has the largest untapped potential and will explode to a $300 trillion market dimension. He mentioned,
“If DeFi might be unlocked on Bitcoin, it might be by far the largest alternative ever to occur in crypto.”
On the Starknet replace, Held termed it as ‘big’ for BTC DeFi progress and mindshare.
In a separate interview with the Provide Shock podcast, Held projected that BTC DeFi progress may eat Ethereum and Solana’s market share.
“I feel what is going to occur is that this simply absorbs market share from the opposite ones considerably, however not completely, and that this will increase Bitcoin’s dominance.”
Within the meantime, Starknet plans to make use of federated bridges to deliver Bitcoin property to its platform because it waits for OP_CAT, a tender fork that goals to boost the Bitcoin community’s sensible contract capability.
It stays to be seen how the DeFi renaissance would trickle all the way down to BTC’s worth on worth charts.
