$BTC BTCFi's Future: Analyzing Market Misconceptions and Technological Evolution

According to PANews, recent discussions about the demise of BTCFi appear premature. The launch of Babylon was anticipated to invigorate the BTCFi sector, but expectations have not been met. However, it is too early to declare BTCFi dead, as there may be misunderstandings about its evolution.

Linking Babylon's market performance directly to BTCFi's future is misleading. Babylon allows users to lock BTC assets on the Bitcoin mainnet while providing 'security consensus services' across various BTC layer-2 networks. While Babylon's technical innovations are beneficial, the demand for these services remains uncertain. From a B2B perspective, the demand for 'security consensus' is not as high as expected. However, individual BTC holders have a need for continuous returns on their holdings. BTCFi aims to integrate Bitcoin's