Starknet, developed by StarkWare and led by Eli Ben-Sasson and Uri Kolodny, launched Bitcoin Staking on September 2025 to connect Bitcoin and Ethereum on its Layer 2 ZK-rollup network.
This initiative aims to enhance BTC utilization in DeFi, boosting Starknetโs TVL and attracting significant institutional participation.
Starknet launched its new Bitcoin staking protocol, seeking to bridge Bitcoin with the Ethereum ecosystem. This development allows BTC holders to partake directly in DeFi activities through its Layer 2 infrastructure.
The new protocol by StarkWare, developed under the guidance of Co-Founders Eli Ben-Sasson and Uri Kolodny, offers BTC staking rewards. Incentives for liquidity providers within the network are highlighted.
Starknet TVL Surges to $220M Post-Launch
Since the protocolโs launch, Starknetโs total value locked (TVL) has increased from $90M to $220M, indicating strong market confidence in BTC staking. Community forums reflect positive sentiments and active developer engagement.
The integration of Bitcoin with Ethereumโs Layer 2 may raise regulatory considerations. However, on-chain data shows a surge in liquidity flows and trading volumes, driven by high-frequency transactions and newly allocated STRK incentives.
Starknetโs ZK-Rollup Gives BTC a DeFi Edge
Innovations like RenVMโs Bitcoin bridge faced security issues, unlike Starknetโs approach, which is pioneering BTC staking in a ZK-rollup environment. Past bridging efforts struggled with composability and security.
Experts from Kanalcoin indicate that the novelty of Starknetโs solution could redefine BTCโs role in DeFi markets. This could lead to increased institutional interest and wider adoption, leveraging Bitcoinโs liquidity potential.
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