Bitcoin-Backed DeFi Lending Protocols Surge as Institutional Adoption Accelerates
Decentralized finance (DeFi) is experiencing a transformative phase, moving beyond speculative trends to become a foundational element of modern finance. Recent data from Artemis and Vaults.fyi reveals that DeFi lending protocols have surpassed $50 billion in Total Value Locked (TVL), marking a significant 60% annual increase. This growth underscores the sector's maturation, with platforms like Morpho providing critical infrastructure for institutional players such as Coinbase. The integration of Bitcoin (BTC) into these protocols highlights the expanding utility of cryptocurrencies in traditional finance. As of July 2025, the DeFi ecosystem continues to evolve, driven by sustainable yields and robust institutional adoption, positioning Bitcoin and other digital assets as key components of the financial landscape.
DeFi Lending Protocols Surge Past $50B in TVL as Institutional Adoption Accelerates
Decentralized finance is undergoing a quiet revolution. Gone are the days of unsustainable yields and speculative mania—today's DeFi growth stems from becoming the invisible plumbing of finance. Lending protocols now hold nearly $60 billion in assets, marking a 60% annual increase according to Artemis and Vaults.fyi.
The sector's maturation is evident in Morpho's infrastructure powering Coinbase's BTC-backed loans, and Aave's dominance among institutional players. "These aren't yield casinos anymore," the report suggests, "but modular financial networks where risk management tools attract serious capital."
A new "DeFi mullet" paradigm emerges—fintech user experiences with decentralized backends—as $300M+ flows into abstracted yield products. The institutionalization wave shows no signs of abating, with lending protocols becoming the foundation for next-generation financial applications.
Bitdeer Seeks $330 Million via Convertible Notes Amid Stock Decline
Singapore-based bitcoin miner Bitdeer Technologies Group is attempting to raise $330 million through a convertible notes offering, marking a significant capital raise as its stock continues to underperform. The upsized private placement comes with a 4.875% coupon and 2031 maturity, with closing expected by June 23.
Unlike MicroStrategy and other crypto-native firms that routinely convert debt proceeds into Bitcoin purchases, Bitdeer explicitly stated it won't deploy these funds for BTC accumulation. Nearly 40% of the capital ($129.6 million) will instead fund zero-strike call options, with another $36.1 million allocated to unspecified operational expenses.
The market has punished Bitdeer's equity throughout the fundraising process, with shares extending their monthly decline to 23% on Wednesday. This contrasts sharply with competitors like Riot Platforms and CleanSpark, whose stocks have rallied alongside Bitcoin's price recovery this quarter.
Bitcoin Surge Toward $200K Looks Unstoppable Right Now
Bitcoin is showing signs of a bullish reversal, with key resistance levels identified at $106K, $109K, and $119K. The cryptocurrency's recent price action suggests growing buyer confidence, supported by technical indicators like the 0.786 Fibonacci retracement level.
Tether's minting of 1 billion USDT has sparked speculation about fresh capital inflows into Bitcoin markets. Historical patterns suggest such events often precede significant price surges, adding to the bullish sentiment.
Market participants are closely watching the upcoming FOMC meeting, as macroeconomic developments could accelerate Bitcoin's breakout. Currently trading at $104,474, Bitcoin has seen a slight 1.19% dip in the last 24 hours despite maintaining a $2.07 trillion market cap.
Bitcoin's Ancient Supply Growth Outpaces Daily Issuance Post-Halving
Bitcoin's "ancient supply"—coins unmoved for at least a decade—is now growing faster than newly minted BTC, according to Fidelity Digital Assets. Since April 2024, an average of 566 BTC daily entered this cohort, surpassing the 450 BTC added by miners. This scarcity signal emerges less than a year after the 2024 halving slashed issuance by 50%.
Over 17% of all mined Bitcoin (3.4 million BTC worth $360 billion at $107,000/BTC) now sits in this dormant category, up from near-zero in 2019. While Satoshi Nakamoto's 33% share dominates the stash, analysts caution any "lost" coins could re-enter circulation.
Volatility persists despite holder conviction. The 10-year supply declines on just 3% of days, but post-2024 U.S. election churn quadrupled sell pressure, with ancient supply shrinking on 10% of recent trading days.
Bitcoin Surges Past $105K Amid Geopolitical Tensions and Oil Supply Fears
Bitcoin reclaimed the $105,000 threshold as geopolitical instability in the Middle East rattled global markets. Iran's abrupt restrictions on oil tanker transit through the Strait of Hormuz—a conduit for 20% of the world's crude—ignited fears of a supply shock, driving capital toward alternative stores of value.
The MOVE signals a deliberate escalation by Tehran, leveraging control over a critical trade chokepoint. Analysts warn Brent crude could spike to $130 per barrel if tensions culminate in a blockade, with JPMorgan forecasting a potential 5% U.S. CPI surge under such scenarios.
OPEC+'s planned 400,000-barrel daily production hike appears insufficient to calm markets, as structural demand outpaces incremental supply adjustments. The crisis underscores Bitcoin's hardening role as a geopolitical hedge, with institutional flows accelerating during traditional market dislocations.
Bitcoin ETF Inflows Drop 47% Amid Market Caution as BTC Price Slides
Bitcoin ETFs saw a sharp decline in investor interest as BTC's price downturn triggered broader market caution. US-listed spot Bitcoin ETFs recorded net inflows of $216 million on Tuesday—a 47% drop from the previous day's $412 million. While inflows remained positive, the slowdown reflects waning institutional momentum.
Bitcoin's intraday price fell to $103,371, extending a 2% loss and fueling anxiety across crypto markets. The sell-off coincided with reduced leverage in BTC futures, where open interest dropped 3% to $70.24 billion. Traders are unwinding positions rather than doubling down.
The trend underscores how price volatility directly impacts capital flows into crypto investment vehicles. ETF enthusiasm, once a bellwether for institutional adoption, now mirrors the hesitancy of traditional traders navigating uncertain markets.
