Bitcoin soared to an ATH of $111,970 before retracing to $110,700 and now trades near $108,000. Despite the pullback, bullish sentiment suggests $115,000 may be within reach.
DeFi Builds New Momentum on Bitcoin
Rena Shah of Trust Machines says this bull cycle differs from past runs because Bitcoin is finally being integrated into decentralized finance in a meaningful way.
Stacks’ sBTC has locked over 2,000 BTC, creating new earning opportunities without requiring users to sell their Bitcoin.
“As BTC holders explore yield opportunities, DeFi on Bitcoin is accelerating,” Shah said.
Matt Mudano, CEO of Arch Network, noted that BTC is no longer sitting idle. “We’re witnessing Bitcoin transition into an asset actively used in lending and DeFi markets,” he explained.
BTC Transformed Into Yield-Generating Capital
New solutions such as Botanix and Granite allow users to lend, borrow, and mint stablecoins using BTC without custodial risks or taxable events.
“BTC is now capital, not just a store of value,” said Mudano. “Its utility in DeFi is driving the current narrative.”
Arch, for instance, provides low-risk credit strategies for BTC holders, while Botanix lets users mint pUSD by locking BTC.
Developer Ecosystem Gains Strength
With the rise of platforms like Stacks and Arch, Bitcoin is becoming programmable, drawing in new developers.
“Bitcoin’s decentralized nature means progress is driven from the ground up,” said Mudano. “Builders are pushing boundaries with new tools and protocols.”
Stacks’ latest roadmap and upgrades like SIP-031 show growing maturity and commitment to unlocking Bitcoin’s potential.
Challenges for Bitcoin DeFi
Bitcoin’s limited scripting and purist opposition remain roadblocks. Botanix’s founder, Willem Schroe, highlighted that compatibility with Ethereum’s virtual machine is helping overcome those constraints.
“The more people see BTC being used without leaving the Bitcoin standard, the more trust and adoption we’ll see,” he said.
While hurdles remain, the current cycle is shaping up as the first true builder-driven Bitcoin bull market—one where price, utility, and innovation converge.
