Are Bitcoin Holders Shifting to Core?

As Bitcoin solidifies its position as a leading digital asset, Core is gaining traction among holders of the flagship asset. The $CORE token, designed to complement rather than compete with Bitcoin, is emerging as a compelling companion asset for Bitcoiners. 

With a robust ecosystem, sustainable tokenomics, and innovative yield opportunities, Core is attracting attention from individual investors, Bitcoin miners, and institutional treasuries alike.

What Is Core? A Bitcoin-Aligned Ecosystem

Core is a high-performance, Ethereum Virtual Machine (EVM)-compatible blockchain designed to scale Bitcoin’s capabilities while offering a comprehensive Decentralized Finance (DeFi) ecosystem. Its native asset, $CORE, is the foundational utility token for its thriving Bitcoin scaling ecosystem. 

According to a recent CoreDAO blog, “A goal behind the CORE token is to make it the second asset that Bitcoiners care about—not by competing with Bitcoin, but by complementing it.” This complementary role is driven by Core’s ability to unlock enhanced Bitcoin yields and power a robust network of decentralized applications (dapps).

The Core ecosystem boasts impressive metrics, including:

• Over 125 dapps spanning lending, borrowing, trading, and gaming
• More than $400 million in total value locked (TVL)
• Over 400 million total transactions
• Hundreds of thousands of daily transactions
• More than 1 million weekly active users

These figures highlight Core’s growing adoption and its role as a hub for Bitcoin-focused DeFi. The ecosystem creates genuine demand for CORE tokens, which are used for transaction fees, governance participation, and accessing DeFi services across the network.

Core’s Utility: Unlocking Higher Bitcoin Yields

One of Core’s most compelling features for Bitcoin holders is its Dual Staking model, which enhances Bitcoin staking yields.

For example:

• Self-custodial Bitcoin staking alone yields 0.1-0.5% annual percentage yield (APY).
• By holding sufficient CORE tokens, Bitcoin holders can achieve 4-6% APY.
• Access to the highest “Satoshi Tier” yields requires maintaining a specific CORE-to-BTC ratio.

This system incentivizes Bitcoin holders to acquire CORE tokens to optimize their returns. Rather than relying solely on gradual reward accumulation, holders can purchase CORE tokens upfront or borrow against their time-locked Bitcoin principal at conservative loan-to-value (LTV) ratios. 

This approach, as the blog notes, “creates a compelling economic proposition: by acquiring CORE today, holders accelerate years of potential yield they would otherwise accumulate gradually.”

Sustainable Tokenomics: A Bitcoin-Like Approach With Multiplier Effect

Core’s tokenomics are designed for long-term sustainability, drawing inspiration from Bitcoin’s own supply mechanics. 

“Unlike yield farming tokens that often have unpredictable or unlimited supply, CORE's economics create enduring value through predetermined scarcity—making it behave more like a productive asset than a temporary yield opportunity,” Core wrote. 

Key features include:

• A fixed maximum supply of 2.1 billion tokens
• An 81-year emission schedule with a 3.61% annual reduction rate
• Predictable, gradually decreasing issuance for long-term sustainability

This structure contrasts with traditional yield farming projects that prioritize short-term rewards. Core’s emission schedule resembles Bitcoin’s but features a smoother reduction curve, avoiding the sharp halvings that characterize Bitcoin’s supply dynamics. This predictability fosters confidence among holders and aligns incentives for long-term growth.

Core’s tokenomics create a powerful demand dynamic known as the “multiplier effect.” The CoreDAO blog illustrates this with an example: “Staking 100 CORE at the highest yield tiers can earn 25 CORE in annual rewards. This means direct purchases would immediately secure a position that would take ~4 years of staking rewards to offset.” 

This dynamic has several benefits:

• Reduced Circulating Supply: Purchased tokens are often staked, reducing the available supply.
• Increased Yield Value: As the token’s value strengthens, staking yields become more valuable.
• Enhanced Scarcity: Locked tokens in staking positions increase scarcity, supporting token value.

This multiplier effect creates a virtuous cycle, encouraging Bitcoin holders to acquire and stake CORE tokens rather than passively accumulate rewards over time.

Bitcoin Holders Embracing Core

Core’s value proposition is resonating with some of Bitcoin’s most conservative stakeholders. Bitcoin miners, traditionally among the most Bitcoin-maximalist participants, are now staking a portion of their rewards in CORE. Further, institutional Bitcoin treasuries are exploring Dual Staking to enhance yields, while exchange-traded product (ETP) and exchange-traded fund (ETF) issuers are leveraging Core’s offerings. 

For instance, Valour’s yield-bearing BTC ETP has generated 5.65% APY exclusively using Core’s staking offerings. Additionally, issuers are exploring lstBTC, a liquid, yield-bearing Bitcoin token pioneered by Maple Finance with several backers, including BitGo, Copper, and Hex Trust for Custody. As of May 2025, approximately one-third of all staked CORE tokens are dual-staked alongside Bitcoin, signaling strong adoption among Bitcoin holders.

Core’s Broader Value Proposition

Beyond yield generation, Core offers several interconnected strengths that drive its appeal:

• Utility-Driven Retention: CORE’s role in unlocking higher Bitcoin yields incentivizes holders to maintain or increase their positions rather than sell rewards.
• Multiplicative Acquisition Effect: Direct acquisition of CORE tokens creates a substantial impact on supply-demand dynamics, as outlined earlier.
• Bitcoin-Aligned Economics: The fixed supply cap and long-term emission schedule align incentives with Bitcoin’s ethos of scarcity and predictability.

These factors are attracting a diverse range of stakeholders, from individual Bitcoiners to institutional players. 

“These mechanics are already attracting some of Bitcoin's most conservative stakeholders—miners and institutional participants—hinting at progress on CORE’s journey to becoming Bitcoin's natural companion asset.”

While Core’s growth is impressive, it’s not without challenges. The success of its ecosystem depends on continued adoption and the ability to maintain high transaction volumes and TVL. Additionally, the DeFi space is highly competitive, and Core must differentiate itself from other Bitcoin scaling solutions and layer-2 networks. However, its Bitcoin-aligned tokenomics and focus on utility-driven retention provide a strong foundation for long-term success.

The Future of Core and Bitcoin

As Core’s ecosystem expands, its role as Bitcoin’s companion asset is becoming increasingly evident. With over 1 million weekly active users and a growing suite of dapps, Core is positioning itself as a leader in Bitcoin-focused DeFi. The introduction of innovative products like lstBTC and the adoption by institutional players further solidify its potential.

As the Core ecosystem continues expanding both its utility and user base, the token's fundamental value proposition only strengthens, making it increasingly clear why Bitcoin holders are becoming CORE holders. For Bitcoiners seeking to maximize their holdings’ potential, Core offers a compelling blend of yield, utility, and long-term value accrual.

A New Era for Bitcoin Holders?

Core is carving out a unique niche in the cryptocurrency landscape by aligning closely with Bitcoin’s ethos while offering practical utility and enhanced yields. Its sustainable tokenomics, thriving ecosystem, and innovative Dual Staking model make it an attractive option for Bitcoin holders looking to diversify their portfolios without straying from their Bitcoin-centric principles. 

As adoption grows among miners, institutions, and individual investors, Core is well on its way to becoming the second asset Bitcoiners care about. For those interested in exploring Core’s offerings, visit CoreDAO’s official website for more information.