Browsing: BTCFi

Solana DEXs have dominated trading volumes through memecoins but face sustainability challenges due to insufficient liquidity depth and overreliance on speculative assets; shifting focus to Bitcoin and stablecoins could build resilient markets for long-term growth.

Bitcoin’s transaction fees have plummeted by over 80% since April 2024, threatening network security as miners rely on these fees post-halving. BTCfi, or Bitcoin-native DeFi, emerges as a potential solution by increasing on-chain activity and fee revenue, with experts highlighting its role in transforming Bitcoin into a financial primitive for broader applications.

The Bitcoin DeFi ecosystem is witnessing a surge in venture capital funding and institutional interest, with Solv Protocol’s BTC+ leading the charge in mobilizing idle Bitcoin for yield generation.

BTCFi’s TVL has surged 22 times to $7B in 2024, driven by new protocols and institutional inflows, yet trust and security concerns remain significant hurdles.