Starknet, developed by StarkWare and led by Eli Ben-Sasson and Uri Kolodny, launched its Bitcoin staking protocol on September 2025. This initiative aims to connect Bitcoin and Ethereum on its Layer 2 ZK-rollup network, enhancing BTC utilization in DeFi, boosting Starknet's 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 protocol's launch, Starknet's 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 Ethereum’s 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.
Starknet's ZK-Rollup Gives BTC a DeFi Edge
Innovations like RenVM’s Bitcoin bridge faced security issues, unlike Starknet's approach, which is pioneering BTC staking in a ZK-rollup environment. Past bridging efforts struggled with composability and security.
Experts indicate that the novelty of Starknet's solution could redefine BTC’s role in DeFi markets. This could lead to increased institutional interest and wider adoption, leveraging Bitcoin’s liquidity potential.