Bitcoin (BTC) is signaling another bullish breakout. After soaring to a record $111,970 on May 22, it briefly corrected to $110,700 and now trades around $108,000. Analysts say the current momentum could send BTC to $115,000 soon.

Bitcoin DeFi Enters a New Era

This rally isn’t like the last ones. Rena Shah, COO of Trust Machines, says the surge is being fueled by actual usage rather than speculation. A major development? Over 2,000 BTC have been locked into sBTC—a bitcoin-backed asset on the Stacks blockchain.

“BTC holders aren’t just HODLing anymore—they’re earning, staking, and building,” Shah said. “Bitcoin’s becoming an economic engine.”

Matt Mudano, CEO of Arch Network, agrees. He points to the rise of Bitcoin layer-2 solutions that are making the crypto king more usable than ever before.

“In previous bull runs, price hikes were driven by hype. Now we’re seeing infrastructure mature—Bitcoin is becoming useful capital,” Mudano stated.

Bitcoin as a Yield-Generating Asset

The narrative is shifting: Bitcoin is no longer a passive store-of-value. It’s becoming productive capital. Mudano highlights that BTC can now be deployed in DeFi strategies—without being sold.

Platforms like Arch and Botanix let users lend or mint stablecoins against BTC, unlocking yield in a non-custodial way.

“It’s about putting your Bitcoin to work—earning from real demand, not just speculation,” Mudano said. “This is the new phase of crypto utility.”

Granite, another player in this ecosystem, enables DeFi lending and borrowing while keeping BTC on the Bitcoin standard via the sBTC bridge.

Builders Take the Helm

With no central authority steering Bitcoin, the ecosystem is evolving through community-driven development. From ZK-rollups to threshold multisig, teams like Arch and Stacks are exploring new ground.

Shah pointed to the newly announced Stacks roadmap and SIP-031 upgrade as examples of this next-gen Bitcoin ecosystem. “It’s not just about hype anymore—it’s about protocol innovation,” she said.

Bitcoin’s DeFi Future Is Bright—but Not Without Challenges

The rise of DeFi on Bitcoin also brings hurdles. Bitcoin wasn’t built for complex smart contracts, and purists remain skeptical about changes to its design.

Willem Schroe, founder of Botanix, says they’re bridging that gap by introducing Ethereum-compatible smart contracts anchored to the Bitcoin network.

“People want to earn from BTC without giving up its core principles,” he said. “We’re making that possible through innovations like pUSD and native DeFi layers.”

Final Word: From Passive to Productive

For the first time, Bitcoin isn’t just a bet on price—it’s a foundation for decentralized finance. Infrastructure is maturing, developer interest is rising, and BTC holders are no longer just spectators.

“This cycle is a builder’s market,” Mudano concluded. “Capital is flowing in, and innovation is exploding. Bitcoin is ready for its next evolution.”