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Starknet Launches Bitcoin Staking, Boosting STRK and Tapping into BTC Liquidity

The Layer 2 scaling solution, Starknet, has officially launched Bitcoin staking, a move set to transform its ecosystem and the broader DeFi landscape. After a brief pause to finalize the update, the platform is now live, allowing Bitcoin holders to participate in Starknet’s consensus for the first time.

This integration is a strategic effort to tap into Bitcoin’s vast liquidity. Bitcoin will account for 25% of Starknet’s consensus power, with STRK holding the remaining 75%. The staking protocol will initially support wrapped Bitcoin versions such as WBTC, tBTC, SolvBTC, and LBTC, with the potential for more to be added through community governance.

The announcement has already had a positive impact on Starknet’s native token, STRK, which saw an intraday rally of over 7%. The update also brings a significant improvement for stakers: the unstaking period has been reduced from 21 days to a more flexible seven days, allowing users to react more quickly to market changes and potentially boosting the platform’s liquidity and Total Value Locked (TVL).

While most of the community views the update as a positive step toward cross-chain DeFi innovation, some critics have raised concerns that the move could devalue STRK by using it as “inflation fuel” to reward Bitcoin stakers. Despite this, Starknet is poised to attract new users and liquidity by bridging the two largest crypto ecosystems.

September 2025, Cryptoniteuae

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Vaibhavv Ali
Vaibhavv Ali

Vaibhavv Ali is the founder and editor of Cryptonite (cryptonite.ae), an independent digital-asset news and analysis publication with a UAE focus. He covers virtual-asset regulation — VARA, ADGM and the UAE Central Bank — alongside real-world-asset tokenization, stablecoins and agentic AI in finance. Every Cryptonite article is human-edited and its sources are linked. He is also a celebrated speaker and host.

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