Redefining the Purpose of Bitcoin: Solana's DeFi Advances Open New Paths for Earning Yields

Solana is transforming Bitcoin’s presence in decentralized finance (DeFi) by introducing fresh functions for the world’s top cryptocurrency. Thanks to forward-thinking integrations such as Bitlayer’s YBTC token,

holders are now able to tap into yield-focused opportunities available on Solana’s fast blockchain. YBTC, which maintains a 1:1 peg with , provides secure and efficient cross-chain transfers and compatibility with DeFi apps, empowering users to earn institutional-level returns through platforms like and Orca’s liquidity market maker Bitlayer's YBTC Token Enters Solana [ 1 ]. This evolution signals a move beyond Bitcoin’s conventional role as a value store, positioning it as an active asset in DeFi networks.

Solana’s DeFi ecosystem has seen explosive growth, making it the second-largest DeFi chain by total value locked (TVL) as of August 2025. Holding $10.2 billion in TVL,

commands a 7.05% share of the global DeFi market—overtaking rivals like BSC and . More than 329 protocols run on the platform, supported by $34 billion in assets bridged from other chains and a stablecoin market cap of $11 billion. This surge is attributed to Solana’s minimal transaction fees, rapid processing speed, and key partnerships that boost cross-chain liquidity Top 8 Solana DeFi Projects to Watch in 2025 [ 2 ]. Institutional players are also joining in, as reflected by the advent of a Solana staking ETF and rising treasury allocations, signaling growing faith in Solana’s performance and scalability.

The integration of Bitcoin into Solana’s ecosystem is further strengthened by projects like btcSOL and Marinade Finance. Through staking

or using liquid staking tokens (LSTs) like mSOL, participants can earn native Bitcoin rewards without the need to liquidate their assets. Marinade’s mSOL token, for example, which represents staked SOL, is now used for advanced leveraged staking strategies on platforms like Drift, yielding up to 15% annual returns. This partnership only increases Bitcoin access for Solana users but also enhances the network’s liquidity and composability. Notably, projects such as (JUP) and (RAY) have broadened their influence, with Jupiter’s DLMM technology boosting capital efficiency for volatile assets and Raydium’s TVL surpassing $1 billion Top 8 Solana DeFi Projects to Watch in 2025 [ 2 ].

Solana’s technological edge over

is clear in its capacity to handle over 2,000 transactions per second (TPS) with negligible fees, whereas Ethereum processes just 15–30 TPS with significantly higher costs. While Ethereum looks to Layer 2 solutions to boost scalability, Solana’s single-layer architecture delivers quicker execution and less fragmentation. This has enticed developers to create high-frequency apps, including DEXs and NFT marketplaces, with Magic Eden’s Solana NFT trading volume recently overtaking Ethereum’s. Upgrades like the Firedancer validator and reduced inflation have further stabilized the network and lessened congestion, making it more attractive to both retail and institutional participants Solana vs. Ethereum DeFi: The Rise of a New On-Chain Economy [ 4 ].

The valuation gap between Solana and Ethereum’s DeFi sectors reveals considerable growth potential for Solana-based projects. While Ethereum’s median fully diluted valuation (FDV) multiple is at 18.1x its 90-day fees, Solana’s is only 4.6x. This points to possible undervaluation based on growth indicators like protocol revenue—which in some instances has grown over 1,000% annually—and DEX activity (Solana surpassed Ethereum in January 2025). As more institutions adopt Solana and cross-chain bridges advance, Solana’s DeFi TVL could narrow this disparity, especially as platforms like Kamino Finance (KMNO) and

(JTO) continue to push boundaries in lending and liquid staking Top 8 Solana DeFi Projects to Watch in 2025 [ 2 ].

Looking forward, Solana’s plans include boosting interoperability with other blockchains and improving validator infrastructure to support greater decentralization. The upcoming Breakpoint 2025 event in Abu Dhabi and the launch of the Solana Seeker smartphone—a device built for crypto—highlight Solana’s aim for mass adoption. At the same time, Bitcoin’s role will deepen through YBTC and zBTC tokens, paving the way for complex DeFi strategies such as automated yield farming and leveraged staking. These advances reinforce Solana’s position as a key force in the multichain DeFi space, combining Bitcoin’s security with the speed and scalability needed for the next wave of financial innovation Bitlayer's YBTC Token Enters Solana [ 1 ].