⚡️ Brothers, I am still quite optimistic about BTCfi. It’s not that other ecosystems are not performing well; Ethereum and Solana's DeFi are already mature, but what truly makes me feel there is still opportunity ahead is Bitcoin.
Looking at the data, we can examine the ratio of DeFi's TVL to network market value for several major ecosystems: Ethereum's DeFi TVL accounts for 21.28% of its market value, Solana is 9.98%, while Bitcoin is only 0.29%.
In other words, one-fifth of the funds on ETH are working, one-tenth on SOL, while BTC... only one out of three hundred is participating in DeFi, the rest are just lying dormant.
Bitcoin is not unused; it is one of the strongest consensus and largest stockpile crypto assets in the world. It is not that BTC is not good, but the development difficulty is too high.
Bitcoin does not have EVM, no high-performance execution environment, and was not designed for DeFi from the beginning, so BTCfi has been relatively dormant over the years until recently when it truly started.
But once it starts, the growth will be more vigorous and organic than any early ecosystem. Without relying on airdrops or large subsidies, this kind of user and market-driven growth is healthy.
Many people may not yet realize the significance of this change. If even just 5% of BTC's market value enters DeFi in the future, the TVL could increase from the current $7B to $112B — a 17-fold increase, possibly even surpassing Ethereum's TVL.
And this new capital is not actually new capital; it is BTC that has been lying in wallets, doing nothing. BTCfi is the key to turning these 'sleeping assets' into productive capital.
Right now, the two most关注 projects in this track are: Babylon and Lombard Finance.
Babylon started with BTC Staking and has made good progress. But recently, I am more focused on Lombard because it is not just about a specific product; it is building an institutional-level Bitcoin capital market, opening the door to BTCfi for traditional financial capital.
You can imagine the future scenario: when financial institutions want to utilize their BTC, the first stop may be Lombard. This is the liquidity valve for the entire BTCfi ecosystem. Once this valve opens, not only Lombard but a series of protocols will be activated, fundamentally reshaping the Bitcoin economy.
So I don't think BTCfi is a bubble at all. It is still at the starting line and is running more steadily and quickly than any new ecosystem in history.
BTCfi is not a short-term hotspot, but a long-term strategy. Just like those who believed in Ethereum early on, what we are seeing now is a brand new financial infrastructure taking shape — and this time, the underlying asset is Bitcoin.
BTCfi has just begun.
