BTCfi thesis: pStake and Babylon BTC staking
Post187 words
Argues BitcoinFi could see parabolic growth since less than 1% of BTC's $1T+ market cap is used in DeFi, and that pStake's liquid staking expertise and Babylon partnership make it an early mover. Flags that competition will likely be fierce.
Key claims
Less than 1% of Bitcoin's market cap is used in DeFi
pStake partners with Babylon for BTC staking
The BitcoinFi ecosystem is set for a huge hype over the next few months.
It has already garnered lot of attention among builders and mindshare among investors.
Considering the vast amount of idle capital that sits in $BTC that's hardly surprising.
Bringing yield to $BTC and unlocking this value in DeFi is huge.
@pStakeFinance has recognized this opportunity and partners with @babylon_chain as the focus shifts primarily to $BTC staking!
The opportunity is enormous.
The amount of $BTC used in DeFi is currently less than 1% of its total $1T+ market cap.
Accelerated by a maturing ecosystem and Bitcoin L2 innovation, the BitcoinFi narrative could soon enter a period of parabolic growth.
@pStakeFinance is positioning itself to play a pivotal in this BTCfi trend/narrative, making $BTC yield accessible to anyone.
Bringing liquid staking expertise and existing partnerships to the table, pStake could be set to become a leader in the BTC staking space. It is certainly among the early movers.
Competition will probably be fierce though. But network effects as well and if pStake succeeds here, this would be a big move for the entire @PersistenceOne ecosystem.
1 image on X
How the covered assets moved · since 16 May 2024
Prices as of 23 Oct 2026This piece lays out a thesis on the sector without making a call on the token, so price moves since publication are shown as market context.
Mentioned for context
Since then
No follow-up pieces on this subject yet. This is the latest take.
Daily closes in USD from DefiLlama and Yahoo Finance. Only a bullish or bearish thesis is read as a call; explainers, maps and mentions are context. Not financial advice.