Bitcoin (BTC) continues its upward momentum, having recently reached an all-time high of $111,970 on May 22 before retracing slightly to $110,700. The current price of Bitcoin is around $108,000, with trends indicating strong bullish sentiment among investors.
Market analysts are optimistic, suggesting that BTC could soar to $115,000 in the near future.
Bitcoin just hit new All time high of $111,700 and $BTC balance on exchanges hit new all time low.
Supply shock is coming and that will send Bitcoin to $200k+ sooner than you think. pic.twitter.com/b9nEiXMUln
— Ash Crypto (@Ashcryptoreal) May 22, 2025
Bull Run Advances Bitcoin DeFi
As the market anticipates another peak for BTC, experts note that this bull run differs significantly from earlier cycles.
Rena Shah, the chief operating officer of Trust Machines, shared her insights with Finance Newso, pointing out that the recent all-time high showcases unique momentum compared to when Bitcoin first broke the $100k mark.
Shah emphasized that the latest Bitcoin bull run has catalyzed the evolution of Bitcoin’s decentralized finance (DeFi) landscape. She highlighted that a notable volume of Bitcoin has recently been staked into sBTC, a Bitcoin-backed asset secured through the Stacks blockchain.
“The Bitcoin ecosystem has seen more and more BTC bridged, with more than 2,000 BTC recently being locked in Stacks sBTC,” Shah added. “As users seek earning opportunities without selling their Bitcoin, we expect a subsequent surge in Bitcoin development.”
sBTC Cap-3 officially filled in just a few hours, with over 5,000 BTC now made productive on the leading Bitcoin L2, Stacks.
That’s over $500M in Bitcoin put to work. Stacks’ momentum keeps rising. pic.twitter.com/ZyhrDa0p8f
— stacks.btc (@Stacks) May 22, 2025
Matt Mudano, co-founder and CEO of Arch Network, echoed Shah’s thoughts, noting that more active engagement is being seen from Bitcoin holders than in previous market cycles.
“Historically, BTC price spikes were largely driven by speculation and accumulation, but this time, the infrastructure is advancing to make Bitcoin a productive asset,” Mudano stated.
He attributed this shift to the growth of Bitcoin layer-2 (L2) networks and integrated smart contract systems, which are encouraging the emergence of BTC-based stablecoins. Mudano highlighted that these developments are unlocking new opportunities, including lending and various DeFi applications associated with Bitcoin.
“People are bridging, wrapping, or integrating BTC not to abandon it but to expand its utility,” he noted. “The narrative around $100K has evolved—we’re focusing on Bitcoin’s practical applications rather than just its scarcity.”
Bitcoin Becomes Active Capital
Current use cases illustrate Bitcoin’s transition from a mere store of value to a dynamic form of capital within the digital economy.
Mudano pointed out that previously, users could only gain from Bitcoin by borrowing against it or converting it into Ethereum-based systems, which carried risks such as liquidation and custodial trust issues.
In response to these challenges, Arch offers a platform where users can earn yields without the need to sell or borrow against their Bitcoin. The firm achieves this by lending out BTC to protocols that deploy it into stable low-risk products.
“Users can contribute to Bitcoin-native decentralized exchanges and perpetual markets, earning fees from tangible economic activities,” Mudano explained. “Yield becomes a function of real demand to utilize BTC in the on-chain economy, similar to how ETH facilitated DeFi growth.”
He believes that just as Ethereum formed the basis of on-chain finance, Bitcoin is finally entering a new phase that distinguishes this cycle from past bull runs.
Shah concurred, stressing that Bitcoin should increasingly serve as collateral. She stated that sBTC enables users to earn yield, access on-chain lending, and trade on decentralized exchanges (DEXs).
Protocols like Granite, which launched in September 2024, exemplify this trend by allowing users to lend and borrow against Bitcoin without needing to liquidate their assets. Developed with support from Trust Machines, Granite leverages Stacks’ Nakamoto upgrade alongside the Bitcoin bridge.
Willem Schroe, founder of Bitcoin L2 Botanix, added that Botanix allows BTC holders to earn without divesting from their Bitcoin. He noted a growing trend towards utilizing Bitcoin in this manner during the current bull market.
“We’re witnessing previously experimental use cases transition into reality. With our testnet live and the mainnet set to launch in mid-June, users are actively borrowing against BTC and engaging with emerging DeFi protocols,” Schroe remarked.
Palladium Labs bridges Bitcoin’s unmatched security with the flexibility of Web3 by introducing PUSD—a Bitcoin-backed stablecoin that operates without centralized control.@PalladiumLabs pic.twitter.com/U5Ckg9DTIW
— Miki.base.eth (@Stanos126) May 29, 2025
To illustrate this, Schroe explained that Botanix allows users to lock up their Bitcoin and mint a stablecoin, like Palladium pUSD (pUSD), providing liquidity without incurring tax implications or exiting their Bitcoin position.
Building on Bitcoin Surges
Interest in leveraging Bitcoin for DeFi is not only increasing among new users but also rekindling the interest of long-term BTC holders who previously kept their assets dormant.
“Capital invariably drives momentum, and for the first time, we are witnessing both in Bitcoin. Past bull cycles enriched individuals; this one focuses on utilizing Bitcoin to create value,” Mudano explained.
Several converging factors this cycle are empowering Bitcoin holders to capitalize more effectively.
“The advent of Ordinals and Runes has sparked significant interest from developers, and new infrastructure such as Arch and Stacks is enabling Bitcoin programmability without compromising its core values,” he elaborated.
Mudano also pointed out that capital markets are finally taking notice of digital assets, saying, “ETFs, institutional strategies, and recognizing that BTC can support a real financial ecosystem are now a reality.”
He believes this bull market may boost BTC prices, but the resulting infrastructure wave signifies a shift towards a builder’s narrative this cycle.
Shah reinforced this perspective, mentioning Stacks’ new roadmap and the launch of SIP-031, both of which illustrate a more vigorous and competitive ecosystem geared towards Bitcoin development.
Challenges To Consider
Despite the evident advancements in Bitcoin DeFi due to the current bull run, considerable challenges persist. Mudano noted that the key factor hindering Bitcoin DeFi lies in its strengths—its decentralization.
“With no central authority—no core team or management committee guiding its evolution—there’s no standardized roadmap for scaling or programmability,” he explained. “This places the responsibility for innovation on the builders and independent teams.”
He believes the Bitcoin ecosystem is currently in a phase of experimentation, exploring innovations such as covenants, ZK-rollups, and custom virtual machines.
Schroe highlighted that a lack of native programmability could stall the growth of Bitcoin DeFi.
“Bitcoin wasn’t originally designed for complex smart contracts,” he said. “That’s where Bitcoin-centric blockchains like Botanix come into play, offering Ethereum virtual machine compatibility while ensuring settlement on the Bitcoin network.”
Furthermore, resistance from Bitcoin purists poses additional hurdles. Schroe mentioned that many skeptics question the viability and security of Bitcoin DeFi solutions.
“Education and effective execution are critical,” he concluded. “As users learn how to earn from BTC in a non-custodial, Bitcoin-native manner, acceptance is likely to accelerate.”
The post Bitcoin DeFi Explodes: Bull Run Locks 2,000 BTC – Is $115K Next? appeared first on Finance Newso.
