- Starknet has unveiled plans to settle on Bitcoin and Ethereum.
- Crypto VC Partner believes that BTC Defi has enormous growth potential.
Starknet [STRK] tries to unite and offer a settlement Bitcoin [BTC] And Ethereum [ETH]A first of its kind if this is achieved this year. Part of his statement read”
“Starknet will be the first L2 to settle on both Bitcoin and Ethereum, so that the two largest blockchain ecosystems are brought to a single layer, unlock new Defi chances and more liquidity.”
The ETH L2 scale solution added that it is one of the cheapest L2s and bring cheap transactions to unlock the BTC deficiency potential.
As a result, it would position itself as BTCs ‘version layer’ for Defi activities such as loans, borrowing, using, etc.
BTC Defi Potential
However, note that there are other BTC scale solutions, including piles, lightning network, BitVM and Bitcoinos. From the beginning of 2025, BTC TVL (total value locked) was around 68k BTC or $ 5.3 billion on its Defi.
The TVL reached a record high of 73.2k BTC in January 2025. For comparison, that was a relatively small 4K BTC decrease in Q1 2025.
When he was zoomed out from last December, BTC Defi TVL grew from 48k BTC to nearly 70k BTC, which translated into 43% growth.
It strengthened the confidence of investors in BTC Defi, which was currently dominated by the use of Platforms Babylon, Lombard, SOLVBTC and payment provider Lightning Network.
Interestingly, the increased interest in BTC Defi could expand the TV even further.
According to Dan Held, a crypto VC at asymmetrical and BTC Defi investor, the sector has the largest unused potential and can explode to a market size of $ 300 trillion. He said,
“If Defi could be unlocked on Bitcoin, this would be by far the greatest chance that ever would happen in Crypto.”
On the Starknet update, held as ‘huge’ for BTC Defi growth and Mindshare.
Held in a separate interview with the supply shock podcast projected That BTC Defi growth could eat the market share of Ethereum and Solana.
“I think what will happen is that this simply absorbs the market share considerably from the other, but not entirely, and that this increases the dominance of Bitcoin.”
In the meantime, Starknet is planning to use federal bridges to bring Bitcoin activa to its platform while waiting for_cat, a soft fork that aims to improve the smart contract capacity of the Bitcoin network.
It is still to be seen how the Defi -Renaissance would drip until the value of BTC on price charts.