Opinion by: Brendon Sedo, Core DAO Preliminary Contribution
Bitcoin is pushing the story “Digital Gold”. The primary driver of this innings is the rise of Bitcoin Defee (BTCFI), which only looks beyond the cases of store-off-value use.
In 2024, Bitcoin (BTC) became a originally yielding-generating property and became the focal point of the decentralized finance ecosystem of the atherium-style. 2025 is that when the kindle can increase its flame on innovative bitcoin sides.
Most previous efforts to tap the value of bitcoin requires significant changes in its base layer as a productive property. This is a big reason that they failed. Bitcoin layer 1 is not designed for a lot of change, which leaves most of the bitcoiner only to HODL and does not do much. The result is that bitcoin decreased as a network and a property.
Bitcoin sidechen has emerged as the right solution for all these problems, without changing the utility of bitcoin without changes or limited by the base layer. Naturally, these protocols will be the most powerful catalysts for the development of BTCFI, especially with crossing the BTC $ 100,000, forming more than 60% of the total crypto market share, and entering a new regulatory landscape with the first “Pro-Crypto” government.
Scaling bitcoin, a productive property
Per Hal Finni, “Bitcoin only can’t scale for every financial transaction […] Blockchain included. “Therefore, his view requires a secondary level of payment.
For a long time, Blockchain Space ignored Finni’s calls for action and preferred innovation to separate bitcoins. However, innovations limited to chains like atherium already are now crossing the world of bitcoin. Sidechains, rollups and other scaling solutions offer more options for holders who want the usefulness of the atherium-style by combining with bitcoin. It designed the ground for BTCFI, where holders can use a series of income-affection solutions such as stating, lending and derivatives.
However, the industry is still in the initial innings of this revolution in bitcoin. By November 2024, only 0.8% of its circulating supply is used for cases of Defi use, According For Galaxy Digital. About $ 2 trillion market cap of bitcoin, less than $ 7 billion Involved Btcfi tvl.
Although it may appear unexpected, it throws light on the rest of the occasion. Bitcoin L2 infrastructure extended 7x from 2021 to November 2024.
recent: Bitcoin Defi TVL BTC Price, Bumper for Adoption 2,000% between 2024
More importantly, it is responsible for a large part of new liquidity flowing in BTC, in addition to institutional products such as exchange-traded funds (ETFs).
Even if the supply of bitcoins in BTCFI platforms and sidechains increases annually 0.25%, according to the Galaxy Digital in the region, a total address of $ 44 billion will be $ 44 billion by $ 44 billion by 2030. However, as bitcoiner knows, it is a conservative estimate and will speed up BTC price action or even more bitcoin DEFI adoption.
According to Galaxy Digital, VCS, for one, has begun to recognize the ability of bitcoin sides, which is already investing over 447 million. Of this, the Q3 was invested in 2024 to about $ 174 million, in 2025 the platform was set up for higher explosive growth. More funding for early stage projects will ensure more successful launch, innovation, options for users and overall value.
As bitcoin-root solutions provide access to cases of productive uses for bitcoins, users will no longer need to rely on reliable intermediaries and bitcoin-economic smart contract platforms. Necessary sacrifice will not be required to expand the utility of bitcoin in the past. This can unlock sufficient value for BTC holders and even bitcoin networks.
Bitcoin yield for bitcoin
So far, touring-perfect atherium virtual machine (EVM) is a way to facilitate cases of yield and other financial use on bridging bitcoins for chains. For example, the Bitcoin (WBTC) market wrapped on Ethereum is more than $ 10 billion. While solutions such as WBTC have been suitable for some, many bitcoin holders prefer to not hand over to custodians with their capital or rely on chains like atherium, which do not align with the unanimous principles of bitcoin or support the network.
BTCFI, defined by bitcin-esular and bitcoin-managed infrastructure, is a solution, from which both WBTC can benefit from the user and bitcoin puris. Users who are already accustomed to the smart contract sophistication of the atherium may continue to enjoy the EVM experience growing close to the roots of bitcoin. If the sidechain aligns with the base network, the royal bitcoin users can get more options for the usefulness of their BTC.
Bitcoin holders also get access to BTC derivatives better than ethereum-native solutions such as WBTC. The yield-bearing BTC derivatives on bitcoin-fed sidechains are a 100x improvement, which offers self-costumes for bitcoin holders and already unavailable produce sources.
Overall, BTCFI can be very important. Not only compared to where it is now, but also the Vij-A-VIS EVM and SVM-based DEFI. Bitcoin sideschin are already running this shift, and will continue to do so during 2025. Everyone needs the correct approach and stability about growth and product pipelines.
For BTCFI, the path is clear: distribute cases of use with product-market fit for bitcoin holders on bitcoin-powered platforms. It will lay the foundation to generate even more value for the bitcoin community as a whole. And finally, there will be a positive flywheel of bitcoin adoption.
The institutional side made headlines in 2024. Now, this is the time to show and distribute its strength to the native, onchan camp.
Opinion by: Brendon Sedo, Core DAO Early contributor.
This article is for general information purposes and is not intention and should not be taken as legal or investment advice. The ideas, ideas and opinions expressed here are alone of the author and not necessarily reflected or represented the ideas and ideas of the components.
