BTC ( staking and competition in the BTC pegged asset market intensifies

With the launch of the first phase of the Babylon mainnet, Pendle's listing of BTC LST, and the introduction of various BTC wrapped assets, market attention has once again focused on the BTCFi sector. This article will summarize the latest developments in BTC ) staking and BTC anchored assets.

BTC ( Staking Market Dynamics

) BTC LST competitive landscape

In the past 30 days, Lombard Finance has achieved rapid growth, reaching its current highest TVL with a deposit volume of 5.9k BTC, surpassing the long-time leader Solv Protocol. Lombard has gained a competitive advantage at this stage by forming strategic partnerships with top re-staking protocols, providing participants with richer re-staking yield sources and DeFi participation opportunities from the ETH ecosystem.

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) The importance of ecological strategy

In the BTC LST field, ecological strategy has become a key influencing factor in the current competitive landscape. Unlike ETH LRT, which benefits from a mature DeFi ecosystem, BTC LST faces more complex considerations, including downstream DeFi application scenarios, the development stage of BTC L2, the combination with various on-chain BTC pegged assets, and the integration with re-staking platforms.

Different BTC LST providers have adopted different strategic approaches:

• Lombard Finance focuses on the development of the ETH ecosystem, providing rich external rewards for stakers through collaborations with multiple re-staking protocols. At the same time, it actively promotes leveraged gameplay of $LBTC on ETH and establishes partnerships with multiple DeFi protocols.

• Solv Protocol and Bedrock DeFi are actively expanding across multiple chains, with ecosystem development covering upstream deposit reception and downstream application construction. The main liquidity of SolvBTC.BBN and uniBTC is concentrated on the BNB and ETH chains, while also injecting BTC liquidity into other L2.

• Lorenzo Protocol and pStake Finance focus on developing the BNB Chain ecosystem in the initial phase, supporting the reception of $BTCB deposits and minting their respective LSTs. Lorenzo has also built a yield market based on BTCFi, utilizing a structure that separates liquid principal tokens and yield accumulation tokens.

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) Pendle enters BTCFi

Pendle has integrated four types of BTC LST ($LBTC, $eBTC, $uniBTC, and $SolvBTC.BBN) into its points market. Currently, $LBTC shows better actual adoption on Pendle compared to other LSTs. Notably, since 37% of $eBTC is supported by $LBTC, Pendle's integration of $eBTC also indirectly benefits Lombard.

Except for $eBTC, the other three LSTs have collaborated with Corn. Corn is an emerging ETH L2 with unique designs of veTokenomics and Hybrid Tokenized Bitcoin. This collaboration opens up the possibility for future BTC LST participation in minting Corn's gas token $BTCN.

( SatLayer joins the staking competition

SatLayer, as a new entrant, competes with Pell Network. Both accept the re-staking of BTC LST and use it to provide security for other protocols. Pell has accumulated a TVL of $270 million, integrating major BTC derivatives across 13 networks. SatLayer, after recently completing financing, has rapidly expanded and currently supports multiple BTC LST.

With more homogeneous re-staking platforms emerging, the liquidity competition for BTC and its variant assets will become more intense. This provides participants with additional arbitrage opportunities but also indicates potential oversupply on the supply side of the re-staking sector.

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Development of BTC Pegged Asset Market

) The competition in the packaged BTC market is intensifying.

The main alternative assets to WBTC currently include Binance's $BTCB, Merlin's $mBTC, Threshold Network's $tBTC, Mantle's $FBTC, and various BTC LST assets.

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) Coinbase launches cbBTC

Coinbase recently launched $cbBTC, with a current supply of 2.7k, deployed on the Base and Ethereum networks. Several mainstream DeFi protocols have expressed support and plan to expand to more chains in the future. Some BTC LST providers have also quickly indicated that they will collaborate with Base, demonstrating the development potential of $cbBTC in the BTCFi field.

( WBTC multi-chain expansion

Despite security concerns, WBTC still occupies more than 60% of the wrapped BTC market. BitGo recently announced the deployment of $WBTC on Avalanche and BNB chains, achieving multi-chain scalability through LayerZero's cross-chain fungible token standard. However, the adoption rate of WBTC continues to decline, and some leading DeFi protocols have begun to remove WBTC from their collateral lists.

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) FBTC is actively expanding

$FBTC has been deployed on Ethereum, Mantle, and BNB chains. Through the "Sparkle Campaign" event, FBTC is actively promoting widespread adoption in the BTCFi space. Multiple BTC ( staking platforms have embraced $FBTC and are providing point incentives for early users.

Conclusion

In the ongoing growth trend of BTCFi, BTC ) re-staking and BTC anchored assets are two key areas worth paying attention to. The re-staking area of BTC ### is experiencing a trend of excessive construction on the supply side, while the market size on the demand side remains uncertain. Differentiated ecological strategies and unique downstream applications have become key factors in the competition among BTC LST.

For BTC-pegged assets, trust remains a core issue. Exchanges, L2, and BTC LST providers are actively developing their respective BTC-pegged assets to gain recognition from mainstream DeFi protocols and users, aiming to quickly capture the market against the backdrop of declining WBTC market share.