Bitcoin Liquid Staking Tokens Market is Picking Up the Pace

The sector of Bitcoin Liquid Staking Tokens is picking up speed. Current total value locked (TVL) is just shy of $4 billion — a figure that very soon may hit that as-of-now elusive milestone.

The sector of Bitcoin Liquid Staking Tokens is quickly heating up, with the current total value locked (TVL) standing just shy of $4 billion. This figure may very soon hit that as-of-now elusive milestone.

Grabbing the biggest piece of the overall liquid Staking BTC pie, and by a significant margin, is Lombard Finance. Not only is Lombard the obvious leader in this sector, but the more than 18,000 BTC (likely LSTs) held by the protocol means it’s quite likely guaranteed to be a part of the superstructure of any BTC LST effector going forward.

Capital efficiency is an increasingly important theme in decentralized finance (DeFi). Now, in the very quiet of night, productive Bitcoin is staking its claim in the DeFi landscape. Its attributes as a productive asset are becoming more pronounced and are offering yield-hungry investors a new avenue for in an industry renowned for its pursuit of new income streams. Several protocols offering Bitcoin staking have recently come online and now look to extend the revolution beyond staking Ethereum.

Lombard Finance Leads the Pack

Leading the charge is Lombard Finance, whose LBTC token boasts an impressive 18,338.96 BTC, dwarfing the totals held by other protocols.

To put this into perspective, Solv Protocol, which offers a range of offerings, follows with 5,182.89 xSolvBTC, 700.04 SolvBTC.CORE, and 23.42 SolvBTC.ENA. In comparison, Bedrock DeFi clocks in with 4,625.85 uniBTC, and PumpBTC stands at 4,372.06 BTC. Rounding out the list is Lorenzo Protocol with 1,310.13 stBTC, Allo with 688.3 AlloBTC, Kinzafinance with 648.77 KinzaBTC, Acorn Network with 568.86 AcornBTC, and Blockmania with 477.36 bBTC.

"Orange Slice: Capturing the snapshot of the Bitcoin LST market with nearly $4B in total value locked.

🔸@Lombard_Finance – 18,338.96 LBTC

🔸@SolvProtocol – 5,182.89 xSolvBTC

🔸@Bedrock_DeFi – 4,625.85 uniBTC

🔸@Pumpbtcxyz – 4,372.06 pumpBTC..."

— Bitcoin Ecosystem (@BitcoinEcoTK) June 10, 2025

Lombard’s LBTC isn’t just big; it’s also getting very popular. Now, that might not mean a great deal in a world where all DeFi protocols are vying for a piece of the market share pie. However, the growth of LBTC in lending markets is particularly noteworthy as it’s becoming a go-to tool in these capital-efficient, risk-reduced environments for more sophisticated DeFi users.

DeFi Integration: Lending Markets Hit New Highs

The adoption of LBTC in lending protocols has hit new heights, with 42.7% of the supply currently being put to work across leading DeFi platforms. Notably, this growth is being driven by Aave and Spark Protocol.

"DeFi utilisation for @Lombard_Finance's $LBTC has been shaping up pretty well recently.

Lending market usage is hitting new ATHs, now at ~42.7% across top platforms:

🔹 @aave → ~32.4% ($352M), 3rd largest BTC derivative

Announcing Spark Protocol’s Integration with Lombard Finance for Capital-Efficient BTC Liquidity Solutions

Spark Protocol, a cutting-edge DeFi protocol renowned for its innovative lending, borrowing, and yield optimization strategies, is excited to announce its integration with Lombard Finance, a

— Spark Protocol (@SparkDotFi) May 21, 2025

Approximately 32.4% of LBTC is used in Aave, which means the active usage of LBTC amounts to around $352 million. This makes LBTC the third largest BTC derivative on the Aave platform. Spark Protocol follows that with 12.2% of the next largest BTC derivative, which means its active usage amounts to roughly $142.7 million. In the BTC derivative category, the only other entity that ranks above Spark Protocol is cbBTC from Coinbase.

The two platforms have high loan-to-value ratios, in the 84–85% range, that they are achieving through these efficiency modes. It allows users to go up to 84–85% of LTV in order to get more liquid while also having a productive capital structure because they keep earning the yield on the assets that