Bitcoin, the cornerstone of the cryptocurrency market and a top-tier global asset, is increasingly being recognized for its store of value. Significantly, nearly 60% of Bitcoin’s total supply is essentially inactive. As of early 2025, roughly 62% of the active supply hasn’t been used in more than a year. Creative new decentralized finance (DeFi) mechanisms are just beginning to realize this exciting, untapped potential. They each claim to provide Bitcoin holders with exciting new opportunities.
Bitcoin's Sleeping Giant
Needless to say, all that dormant Bitcoin has raised a lot of eyebrows. Some like Curve are already looking to use these reserves to enter the DeFi ecosystem. As of March 10, Bitcoin’s total value locked (TVL) in DeFi has jumped over $5 billion. This is still just 6% of the total TVL on all blockchains. Of all the ecosystems, Ethereum continues to be the dominant force within the DeFi space. It currently holds an outstanding 52.56% of the Total Value Locked ($48 billion).
This inequity creates an amazing possibility. By bringing more Bitcoin onto DeFi platforms, we can make the Bitcoin network better while improving the larger DeFi ecosystem. The advance of restaking is proving to be a central plank in this effort.
Restaking: A Catalyst for Bitcoin in DeFi
Restaking provides an attractive alternative for Bitcoin holders who want to earn yield on their assets while maintaining custody. This policy dovetails nicely with the long-term, conservative investment strategies valued by Bitcoin holders. This allows them to participate in DeFi innovations without putting the long-term safe-keeping of their Bitcoin assets at risk.
Moreover, restaking enables Bitcoin holders to engage with new DeFi applications and services, fostering greater participation and innovation within the ecosystem. Bitcoin holders should take advantage of restaking as a way to cultivate and expand DeFi. In doing so, they can maximize returns on their otherwise idle assets.
DeFi Tools and Dormant Bitcoin
Recent developments in DeFi, such as wrapped tokens and cross-chain bridges, are pushing the boundaries of our financial ecosystem. Today, Bitcoin holders will be able to seamlessly partake in various DeFi activities including flash loans, lending, staking, restaking and yield farming. Beyond preservation, these tools give Bitcoin holders more choices on how to use their assets wisely. They even provide assistance to those whose holdings have been dormant for decades.
Even governments have been cashing in, with the U.S. government now holding an estimated 198,000 BTC. As always, the DeFi landscape continues to move at a rapid pace. Look for even more advanced approaches to tapping into idle Bitcoin, deepening its integration with the DeFi ecosystem and honing in on Bitcoin’s true potential.
