The volume of locked value (#TVL ) in the Bitcoin-based decentralized finance sector (#BTCFi ) has increased by more than 2700% over the past year. According to Binance, this figure reached $8.6 billion, making it one of the fastest-growing areas in the crypto industry. Experts believe that BTCFi can change the perception of Bitcoin from a passive asset to a productive tool with income-generating potential. This opens up new opportunities for coin holders.
BTCFi is aimed at integrating DeFi mechanisms into the Bitcoin base layer, providing users with new ways to earn money. A Binance study states that the continuation of this trend combined with a potential decrease in interest rates in the US could strengthen positive expectations for Bitcoin in the medium and long term. The growth of the BTCFi sector contributes to the development of tools for generating income through lending, providing liquidity, and other DeFi mechanisms.
The launch of BTCFi accelerated after the Bitcoin halving last year and the launch of the Runes protocol - the first standard for issuing fungible tokens on the network. New projects are also contributing to the sector's development. Babylon introduced the first-ever BTC staking opportunity, allowing coin holders to earn passive income. Hermetica launched a synthetic dollar based on Bitcoin - USDh, offering investors a 25% yield.
Against the backdrop of growth in the BTCFi sector, long-term Bitcoin holders have started accumulating assets again. Data shows that the volume $BTC owned by such holders reached a low in February, after which it began to rise. Their active accumulation actions reduce the available BTC supply on exchanges, which could lead to a coin shortage and a new price increase in the future.
The study #Binance emphasizes that this trend coincides with a 'significant period of Bitcoin adoption.' One of the factors was the creation of a strategic reserve of Bitcoins in the US. The signing took place a day before the first-ever White House Crypto Summit. #CryptoNewss
