Oh, the grand spectacle of Bitcoin-based decentralized finance (DeFi), or as the fashionable call it, BTCFi! It grows like a weed in a gardener’s nightmare, yet trust remains as elusive as a unicorn in a desert. 🦄
According to the wise sages at DefiLlama, the total value locked (TVL) in Bitcoin-based (BTC) DeFi protocols has soared from a mere $304.66 million on Jan. 1, 2024, to a staggering $6.5 billion by Dec. 31, 2024. As of this writing, the TVL stands at a princely $7.05 billion. A 22-fold increase, indeed! 🚀
A report from the illustrious Arch Network, a Bitcoin smart contract layer, suggests that this meteoric rise was fueled by a concoction of new protocol launches, emerging token standards, institutional inflows, a major price rally pushing BTC to an all-time high, and the rise of liquid restaking. A veritable feast of financial wizardry! 🎩✨
Yet, despite the grandeur, a survey reveals that 36% of respondents still shy away from BTCFi, citing a lack of trust. One-quarter avoid it like the plague, fearing losses and smart contract exploits, which 60% view as the top security risk. Ah, the perils of modern finance! 😱
The survey, a modest gathering of 125 respondents, included builders, investors, and early users from the likes of VoltFi, DPI Capital, Arkova, Ordbit, and other Bitcoin-based DeFi teams. A veritable who’s who of the crypto world! 🌟
BTCFi’s Thorns and Roses
Developing on Bitcoin, it seems, is no walk in the park. According to the survey, 44% of BTCFi enthusiasts are drawn to it by its vaunted security and decentralization. However, 43% argue that Bitcoin’s limited smart-contract support is the greatest challenge. About 45% cry out for better infrastructure, 43% plead for wider Bitcoin layer-2 adoption, and 34% lament the lack of liquidity. A veritable chorus of complaints! 🎤
How BTCFi Experts Juggle Their Bitcoin
Among the respondents, 36% keep their Bitcoin in cold storage, like a miser guarding his gold. Another 33% trade on centralized exchanges, 31% use Bitcoin for payments, and 29% use it as collateral in DeFi protocols. A mere 22% bridge their Bitcoin to other blockchains as wrapped tokens, a tokenized version of BTC representing a native Bitcoin deposit in custody. A true ballet of financial acrobatics! 🎭
Read More
- USD GEL PREDICTION
- Gold Rate Forecast
- USD IDR PREDICTION
- ARB PREDICTION. ARB cryptocurrency
- EUR AUD PREDICTION
- USD PHP PREDICTION
- EUR BRL PREDICTION
- EUR TRY PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- LEO PREDICTION. LEO cryptocurrency
2025-07-17 17:08