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The summit of all bitcoin time of $ 100,000 at the end of last year was a fever dream. It was the top of an epic bull race which was long-awaited, and since then, the United States has considered a federal Bitcoin (BTC) reserve, and even the pension funds are embarking on the cryptographic space. Although this is good for bitcoin as an actor, it highlights an urgent need for Bitcoin to do and be more for the growing world of people who turn their attention to the chain.
Last year was a year of possibility of Bitcoin – an exploration of routes to the realization of deffi built on bitcoin, and the choice of Trump to use WBTC for the reserve reaffirmed what we all think about bitcoin . It is a fantastic store of value, but with regard to public services, Ethereum (ETH) always has the upper hand, and with more eyes on the chain than ever, Bitcoin has a catch -up to do.
The current space is not empty of developers, 2024 has seen positive progress in the development of Bitcoin Defi, which has included major progress in native solutions that would give users the possibility of lending, participating in agriculture And other challenge services that we are currently missing on Bitcoin. These “native” solutions built directly on the Bitcoin blockchain offer unique advantages in terms of security and decentralization.
There is therefore no doubt that DEFI on Bitcoin is not only a possibility – it is a reality. But, for Bitcoin to really evolve, the action must go from theory to the construction of accessible and easy -to -understand projects which offer tools and defines functionalities for a wider audience. The key does not concern the possibility of Bitcoin Defi, but the simplicity with which we can build an environment that favors user experience and therefore accelerates its adoption.
Others have done – How can Bitcoin?
We know that Ethereum has been designed to support a wide range of DEFI features via smart contracts: Ethereum Virtual Machine, which allows a complex logic; Layer 2 solutions, which improve scalability; And its repairable programming, which allows customizable applications. Ethereum has been built so that users can lend and borrow assets, trade on decentralized exchanges such as Unisawp or Sushiswap, engage in agriculture, etc.
Bitcoin’s strength lies in its secure reserve of value, but unfortunately for many, it is there that it ends. Bitcoin, many of whom still perceive, has limits struck for users in terms of scaling and to do more with assets. Ethereum, on the other hand, attracted millions of users by offering a healthy ecosystem animated by DEFI protocols. To maintain this relevance and attract the next generation of crypto users, Bitcoin must go beyond being a simple passive value store. He must offer users the same opportunities as channels like Ethereum.
The developer community is well aware of this, which is why we have seen a wave of new projects and innovations increasing the usefulness of the Bitcoin ecosystem. The layers-2 and the Rollups, for example, projects like Bob bring the power of the DEFI tools from Ethereum to Bitcoin by puncturing with an EVM, protocols like Babylon allow Bitcoin to mark out with the yields of onchain and the platforms -Stalle of Mazo for Bitcoin, allowing for yields and complete Mazo for Bitcoin, allowing faster transactions and more complex intelligent contracts. In addition, new emerging protocols that allow a whole new way of strengthening the features directly on layer 1 of Bitcoin, using inscriptions and ordinals. Together, these projects broaden the cases of use of Bitcoin.
Equally important, as Bitcoin’s DEFI capabilities develop, its unrivaled liquidity becomes even more relevant. Unlike other ecosystems, Bitcoin offers the greatest liquidity with inherent stability.
Bitcoin liquidity service
While Ethereum is currently dominating the DEFI story with its rich ecosystem of Dapps and developers, Bitcoin has a unique advantage: its liquidity. Despite its relatively limited DEFI functionality, the Bitcoin market capitalization exceeds $ 2 billions of dollars in January 2025. The Bitcoin liquidity pool is not only important; It is only stable and reliable.
Liquidity is the ultimate element of any financial ecosystem and, in Defi, it plays an essential role. Liquidity pools and automated merchants allow users to exchange assets directly on the blockchain without intermediaries. By providing their cryptographic assets to these pools, users derive transaction costs while supporting the overall health of the system.
This is where the vast liquidity of Bitcoin changes the situation. It allows users to engage with Bitcoin DEFI while benefiting from more stable prices, reduced risks and simpler interactions. By eliminating the need to worry about liquidity, Bitcoin creates a more accessible and reliable ecosystem for everyone. This unequaled liquidity is the main competitive advantage of Bitcoin – one that many other blockchains cannot reproduce. The combination of unmatched liquidity of Bitcoin with a new technological innovation is what will make the next evolution of Bitcoin so significant.
Simplification of Bitcoin DEFI for consumer adoption
Currently, for many, engaging with Bitcoin Defi requires navigating in a complex network of transactions and technical jargon. This is not an evolutionary model, which is why we have to move to something simpler.
However, new developments are starting to solve this problem. Using progress in Bitcoin script capacities, some developers are now able to create systems that considerably reduce the complexity of trading or the execution of complex financial transactions. With new solutions, users can now initiate more advanced interactions directly on the Bitcoin network, unlocking features such as peer trading without obliging the user to leave the Bitcoin blockchain.
The development of systems that facilitate trade, loans or yield of agriculture without users having to navigate through complex technical obstacles is transformational for the way users interact with Bitcoin.
What is the next step?
Currently, it seems that “Bitcoin Defi” is the burning subject of this year. Its transformation of a passive value reserve to a dynamic center for decentralized finance is already underway.
We have seen how its liquidity constitutes a solid basis, offering stability and security, while developers continue to create innovative solutions such as layer-2 and advanced script capacities. However, the current complexities surrounding Bitcoin Defi prevent it from reaching its full potential. To unlock the real power of Bitcoin, it is crucial to build a robust and self -sufficient challenge ecosystem which integrates all the necessary functionalities natively on its own network. This will allow Bitcoin to evolve beyond a reserve of value, transforming it into a versatile and functional financial tool.
