Bitcoin On-Chain Momentum Accelerates: 10M Active Users, Exploding Stablecoin Supply, and a Booming Derivatives Ecosystem

A still unfolding revolution is under way with Bitcoin , not where it is most visible, at the price, but deep within the ecosystem. User activity has surged, and with it, a lot of on-chain metrics have turned, almost dramatically so in some cases, bullish. The network has seen a flood of stablecoin capital, and on top of that, it looks like we’re now building with Bitcoin (in a way that for the last cycle we seemed to build with Ethereum). The next wave of financial innovation isn’t just on the drawing board; it’s here and happening. With more than 10 million people involved in the Bitcoin blockchain every month, this digital code is no longer just a comparatively simple series of “if, then” instructions. It is a growing, dynamic part of an on-chain financial system that serves its users with an astonishing range of increasingly innovative digital services, all happening on the blockchain. And the numbers are backing it up. Stablecoins Set the Stage for Bitcoin’s DeFi Expansion The most significant force behind the evolution of Bitcoin’s on-chain operations is the swelling supply of stablecoins. The whole stablecoin ecosystem now stands at over $144 billion, with USDC by itself growing at a remarkable 38.6% annual rate since January. This is an influx of dollar-pegged money that is liquid and available in the ecosystem for anything that might happen on-chain. Stablecoins serve as the operational currency for DeFi, enabling everything from collateralized lending to cross-chain swaps that happen without hiccups. This liquidity infusion is especially timely for Bitcoin. It is helping to catalyze the emergence of on-chain derivatives markets and staking protocols built either directly or indirectly on BTC infrastructure. With more capital available, these protocols can offer better yields, deeper markets, and more attractive products for both institutional and retail users. And that’s precisely what’s beginning to occur. The Rise of Bitcoin On-Chain Derivatives and Re-Staking Protocols A trend that can hardly be overlooked is that of the rapid formation of protocols for derivatives of Bitcoin, whether they are native or BTC-backed. Re-staking—a mechanism for using bitcoins that sees them deposited into protocols in order to earn yield or participate in governance—is being posited as a next-generation financial product, one with which to profit in a bear market. Over the last year, deploying Bitcoin to this nascent financial space has involved sending across a total of 57,167 BTC. In the lead is Lombard Finance (@Lombard_Finance), which holds 40.6% of the market share and oversees 20,405 BTC in deposited assets. Nestled in its pristine position atop the pie chart, Lombard has established itself as the go-to venue both for depositing Bitcoin and for reaping the benefits of staking it. Nipping at the heels of the re-staking market is Solv Protocol (@SolvProtocol), with a 17.9% share. PumpBTC (@Pumpbtcxyz) is another to watch, as their meteoric rise to 5,948 BTC reflects surging interest from yield seekers and speculators. Still, the current 135,000 staking wallets signal extreme early-stage headroom. If we give that a 5x potential, we’re still being conservative. Staking in Bitcoin isn’t a distant possibility that could happen under some future set of circumstances. It’s a very real prospect with a lot of current momentum behind it. And it has the potential to really change the nature of Bitcoin. BTC on-chain momentum is real: 10M MAUs, $144B stablecoins, and booming yield protocols — OKX Ventures (@OKX_Ventures) April 23, 2025 Bitcoin’s Network Strength: Deep Liquidity, Real Decentralization What makes Bitcoin stand out in this ever-changing environment is how deep and decentralized its user base is. Over 60% of all BTC in circulation is held in small- to mid-sized wallets—specifically those holding less than 100 BTC or between 100 and 10,000 BTC. This distribution pattern is a hallmark of true decentralization, carrying with it none of the dangers that market dynamics dominated by whales cause in many small-cap cryptocurrencies. Furthermore, the Bitcoin network’s security is greatly enhanced by the distribution of its UTXO sets. A diversified UTXO landscape lowers the odds of anything like a large-scale double-spend or a centralization of power happening within the Bitcoin network. In essence, if one poor soul wanted to pull off either of these stunts, the mostly random distribution of UTXOs and the many ways to accomplish apparently similar tasks oxygenate the network’s security and thus Bitcoin’s position as the most secure blockchain of all time. The structural merits of Bitcoin make it the asset preference for programmers constructing staking and derivatives applications. With a colossal global user base and trustworthiness in code, Bitcoin is positioned like no other asset to support the next iteration of decentralized finance. This is the place where yield, derivatives, and institution-grade on-chain services become the norm. Conclusion: A New Era for On-Chain Bitcoin Bitcoin is not merely a passive asset any longer, stored in cold storage. The network now has 10 million monthly users, underpinned by a $144 billion stablecoin foundation, and over 57,000 BTC have already been committed to re-staking protocols. With ongoing advancements in infrastructure and a growing number of users, Bitcoin stands to benefit from perhaps the most significant on-chain momentum in the next bull run. You may have thought of Bitcoin only as a digital version of gold. You might want to reprocess that thought, however; the real action is happening on-chain. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !

Source: NullTx