A new report by Arch Network, shared with CoinDesk, shows that the total value locked (TVL) in Bitcoin-native protocols has surged from $307 million in January 2024 to $6.36 billion by mid-2025 — a 20-fold increase driven by lending apps, stablecoins, and institutional inflows. The data paints a picture of a shifting narrative away from “digital gold” and toward programmable, yield-bearing bitcoin. Lending and borrowing protocols are the most frequently cited usage protocols, mentioned by 59% of the respondents. Bitcoin-backed stablecoins followed (41%), then DEXs (32%) and real-world assets like tokenized real estate (29%). These aren’t speculative side bets — they’re early signs of product-market fit, especially for users who want access to liquidity without selling BTC. 36% still keep their Bitcoin in cold storage, citing a lack of confidence in current DeFi platforms. Another 25% avoid Bitcoin DeFi due to high perceived risk, while 60% of all respondents flagged smart contract exploits as the top security concern. “Bitcoin’s true potential lies beyond being a passive store of value,” Arch CEO Matt Mudano said. “Unlocking its liquidity is the next frontier.” “If even a fraction of Bitcoin’s $2 trillion market cap gets productive,” said DPI Capital’s Shahan Khoshafian, “the upside is massive.”