Lightning Network & BTCFi Unlock New Opportunities
The state of Bitcoin as the number one store of value in the cryptocurrency world is easy to look at the price chart on CoinMarketCap in a rough way. It’s also easy to appreciate if you’re familiar with its consensus mechanism, scarcity and supply schedule. But lately, the world’s most famous digital asset is making a sensation in another area – Defi.
Once seen as a haven for digital gold and ultimate inflation, BTC has grown in adoption in DEFI and is now one of the hottest narratives in the industry. Indeed, the total value locked in the Defi protocol (TVL) has been stable since October last year.
So, what factors can we praise for using bounce? Why is it important?
Bitcoin’s defi boom
It is fair to say Bitcoin’s 2024. Not only did it smash and release new all-time highs (ATH) prices on the previous ceiling, it also experienced a halving activity, but it also had a huge interest from institutional investors, even being led by a leading company thanks to the launch of the Spot ETF The presidential candidate’s praise – continue to win the election.
This momentum continues until the New Year, with Bitcoin’s price reaching $109,350 in new ATH on January 20. Perhaps more important than the price, though, whether it is a trader, lender, borrower or Stark, the attractiveness of coins to moving. This phenomenon even gave birth to its own term: BTCFI.
Incredibly, the total value of Bitcoin locked in Defi Rose More than 2,000% In 2024, from just $307 million in January to $6.5 billion on December 31. $6.8 billion has been locked In BTFI.
Obviously, Bitcoin’s unparalleled security and deep liquidity make it the ideal foundation for the Defi protocol, many of whom benefit from the advent of such scaling solutions. Lightning Network and exsat This makes it possible to happen faster and more scalable transactions.
Given the depth of dormant liquidity held by Bitcoin, the arrival of these platforms is not surprising, and the community has not been able to take advantage of their favorite cryptocurrencies to take advantage of countless Defi opportunities until recently. In hindsight, it is always a matter of time to use the solution to the Internet, making BTC available in decentralized finance.
EXSAT, described as a docking layer for Bitcoin scalability, is a particularly interesting example of the BTCFI project because it adopts a hybrid consensus mechanism (Proof of Work) and Verification proof of importing Bitcoin blocks in a decentralized manner. This way EXSAT supports the extension of Bitcoin utility and can develop DAPPs based on intuitive Bitcoin such as DEX and loan protocols.
Late last year, Exsat launched credit to provide new money-making opportunities for Bitcoin while enhancing ecosystem security. Through credit points, users can verify BTC blocks in the EXSAT network, sign consensus and receive rewards in the process. It is the leading Bitcoin remake protocol now Has $692 million In TVL.
By providing secure and transparent earnings opportunities for hardcore Bitcoin, EXSAT’s credit staking replicates the success of Ethereum’s Ethereum-based Defi protocols that have become increasingly popular since 2019. Interestingly, credit storage relies on a native EXSAT bridge developed with the help of custody of Ceffu, Chainup, Cobo and Cactus, which allows users to retain ownership of their base BTC when participating in placement.
The early stages of BTCFI
Although Bitcoin’s Defi TVL still lags behind Ethereum and Tron, it is on an undeniable upward trajectory. Blue – The transition of cryptocurrency from static haven assets to dynamic Defi players has just begun, such as the innovation mentioned above paves the way for wider adoption and lucrative market opportunities.
Although the future of Bitcoin Defi is bright, we need to borrow a popular phrase: We are still early. Especially if Galaxy Digital’s prediction is correct; last year, it said 2.3% of Bitcoin’s circular supply could be bridged to BTCFI by 2030 – about $47 billion.
So biased bitcoin machines will do a great job to make sure they know the opportunities available for use right now.
