The State of Bitcoin

Bitcoin represents over 50% of the total cryptocurrency market, valued at around $1.4 trillion.

Current State of Bitcoin

Satoshi Nakamoto envisioned Bitcoin as a peer-to-peer electronic cash system where decentralized digital currency could be used as a medium of exchange.

As a peer-to-peer network, Bitcoin has made its mark on the world, inspiring countless new payment systems, blockchain networks, and applications. Network transactions hover between 300,000 and 600,000 per day, and scaling solutions like the Lightning Network now accommodate a growing user base and transaction volume.

As a medium of exchange, stablecoins have become the de facto asset for peer-to-peer transactions, while Bitcoin has emerged as a store of value or digital gold. Today, Bitcoin is a mainstay in both investment portfolios through ETFs, and as a balance sheet and treasury asset at technology firms.

Its decentralized nature and security have made it the flagship cryptocurrency, with a market cap over $1 trillion that dwarfs all others. However, despite its dominance, Bitcoin's utility within the broader crypto ecosystem has remained limited. Unlike Ethereum, Bitcoin's architecture has not lent itself easily to more complex financial applications, such as DeFi, where other cryptocurrencies like USDC, USDT and Ethereum have thrived.

Bitcoin’s current use case primarily revolves around holding and transferring value, with less emphasis on generating yield or participating in decentralized financial markets. This limitation has led to a significant amount of Bitcoin remaining idle, missing out on the opportunities that more flexible assets like Ethereum can capitalize on within the DeFi space.

Over $1 Trillion worth of BTC is idle

No Native Yield: Unlike ETH, which benefits from a thriving staking economy, BTC lacks a comparable low-risk source of yield.

No Cross-Chain Composability: Current methods to use BTC in DeFi compromise on security and decentralization.

Fragmented BTC Liquidity in DeFi: Bitcoin liquidity is thinly spread across numerous Layer 2 solutions and wrapped tokens.

Few Integrations with core DeFi primitives: ETH & USDC remain the collaterals of choice in DeFi, even though BTC is fundamentally better suited for the job.

Yet, Bitcoin is still #1, and the time is now...

There is no Second Best: Bitcoin is by far the largest cryptocurrency by market cap, liquidity, and institutional adoption.

The Infrastructure is in place: Bitcoin-native DeFi is here to stay (BRC-20, Runes, Ordinals, Inscriptions, OP_CAT, etc.).

BTC DeFi at an inflection point: Just about any chart of Bitcoin DeFi is reminiscent of early 2020, right before DeFi took off. Exponential growth is inbound.