Bitcoin DeFi takes center stage
A surge of new projects is enhancing the Bitcoin ecosystem, shifting its role from a static store of value to a more dynamic asset. Bitcoin recently surpassed $100,000, attracting institutional and retail interest, but much of its liquidity remains idle. The rise of Bitcoin decentralized finance (DeFi) and layer-2 solutions is unlocking this liquidity, with over 75 L2 projects emerging in the past three years. Notable developments include Stacks' Nakamoto upgrade and the launch of sBTC, enabling seamless transfers between layers. Bitcoin's total value locked (TVL) in DeFi reached $7.48 billion, indicating growing interest despite being smaller than Ethereum's TVL. Regulatory changes in the U.S. are expected to boost investor confidence in Bitcoin DeFi. Even minimal penetration into DeFi could yield significant market potential, enhancing Bitcoin's utility and security budget, ensuring its long-term sustainability.
