The increase in the Bitcoin Prix (BTC) has a major impact on decentralized Bitcoin (DEFI) funding. Data of the total value of the total value of Bitcoin de Defi Protocols (TVL) increased from $ 304.66 million on January 1, 2024, to $ 7.117 billion at the time of the editorial staff.
The recent increase in Bitcoin DEFI – often called BTCFI – is also probably due to institutional entries, to launches new protocols, to the re -evolution of liquids, to bitcoin -supported loans, to a yield, and more. Institutions are looking for a BTCFI strategy
Rena Shah, COO of Bitcoin Defi Ecosystem Trust Machines, told Cryptonews that institutions finally wake up at the idea that Bitcoin develops at a faster rate.
Consequently, the batteries of Bitcoin Layer-2 ecosystems have recently reported 5,000 SBTC (an actor supported by a Bitcoin 1: 1 which allows BTC DEFI) tonted in a few hours.
SBTC CAP-3: Full. We reached the cap of 5,000 SBTC in less than 2.5 hours. BBTFI is inevitable. – stacks.btc (@stacks)
Shah added that the total loan value through the battery ecosystem increased with the appreciation of Bitcoin prices.
As Bitcoin is recognized as a form of guarantee, Shah believes that institutions will also begin to seek a BTCFI strategy, with many others to follow suit this year.
“When everyday users see BTC reaching new heights of all time, this creates an opportunity for a second step – Bitcoin Defi,” said Shah. “Manufacturers who have prepared at this time will have the best opportunity to present new users to relax the full potential of their bitcoin.”
Ben Sanders, director of growth at Rootstocklabs, also believes that this will be the case. Sanders told Cryptonews that over the coming months, there will probably be more cryptography exchanges and consumption financing applications incorporating Bitcoin layers as a rootstock to give users access to BTCFI.
“While more and more institutions are building stocks of bitcoin, it is also inevitable that more of them seek means to put their BTC at work in blocks of Bitcoin like Rootstock,” said Sanders.
Sanders also shared that the use of the rootstock when the Bitcoin DEFI layer had increased in activity.
“This is reflected in the rootstock of new heights in terms of locked total value and active addresses interacting with the network,” he said.
The main protocols like UST0, Solv, Midas and Layerzero also recently added the support for Rootstock, more triggering the current BTCFI change.
It’s time. BTCFI, for real. – Rootstock (@Rootstock_io)
Rich Evans, CEO of Crypto Exchange Cex.io, told Cryptonews that he thought that one of the most promising developments is the introduction of Stablecoins to Bitcoin Defi.
Reimagining Stablecoins on Bitcoin: The Future of Defi has just published their quarterly report. One of the main conclusions? The continuous power of stablescoins. And while ETH A… – Arch Network (@archntwrk)
“Tether was aimed at launching USDT on the Lightning network via Tapoot assets, while UST0 was recently added to Rootstock,” said Evans. “The stablecoins are indeed the backbone of the DEFI activity through other channels. Bitcoin has long been lacking in a dominant stable asset, so the expansion of the stable could change the situation for Bitcoin Defi.”
This already seems to be the case. Sanders stressed that two of the largest use cases on the rootstock are currently loans and loans.
“We see both retail users and institutions exploiting the rootstock to generate a return from their BTC participations, or borrow staboins against them. I heard incredible stories about people who finance renovations at home and businesses that unlock capital to develop in new markets, “he said.
Willem Schroé, CEO and co-founder of Bitcoin Layer-2 Botanix Labs, Botanix has also experienced regular growth in Cryptonews due to these factors.
“While capital returns to the ecosystem, we note an increase in interest concerning the native challenge of bitcoin, in particular in loans, replenishment and generation of return on BTC,” said Schroé.
He added that Botanix has experienced regular growth of new users and applications deploying to allow the loan, decentralized exchange activity and Bitcoin yield. What is the next step for Bitcoin Defi
While BTCFI is increasing, the sector could also soon enter a new growth stage. According to Shah, the cross opportunity is the next great opportunity for Bitcoin Defi.
“Even if you have assets on another layer-1, Stacks creates bridging opportunities so that users can access the best of Defi, without having to sell their BTC,” she said.
Evans also stressed that technical innovations like BitVM2 and BitVM3 recently proposed prepare the way for more flexible and scalable intelligent contracts on Bitcoin.
“Bitvm3, in particular, promises native Bitcoin native bridges, which could reduce dependence on wrapped active ingredients and allow safer crossing activity.
Although BTCFI has enormous potential, Evans explained that the growth of Bitcoin Defi has always been relatively slow.
“While the price of Bitcoin has reached a new record of all time, which represents an increase of around 28% YTD-Bitcoin Defi did not keep the same rate, which has only increased by 8% and still seated below its previous peak,” he said.
Given this, Evans noted that the recent Bitcoin price rally has sparked a renewed interest and momentum, but so far, has not been translated as a vague of major activity in BTCFI.
This may be due to a number of challenges. For example, Schroé believes that for Bitcoin Defi to flourish, long -standing holders must reframe their relationship with the assets.
“For years, the dominant story had to” buy and hold “. This state of mind worked in the first phases, but for Bitcoin to reach its full potential, it must be used.
In addition, Schroé pointed out that security and education are always problematic with regard to BTCFI.
“Many bitcoins are cautious to use new tools, and that’s rightly,” he said.
Echoing this, Sanders commented that security had become essential for the prosperous adoption.
“It is essential that Bitcoin cash companies, infrastructure providers, guards and teams that build decentralized protocols are aware of the risks and put the right measures and guarantees in place to protect their users in the future,” he said.
