Historically regarded as a 'store of value,' Bitcoin is poised to redefine its role in DeFi by 2025, thanks to emerging technologies and solutions.
Bitcoin's Emerging Opportunity
Ethereum currently dominates DeFi due to its programmability, but Bitcoin is nearing a turning point where it can merge its liquidity with Ethereum's capabilities. This is achievable with proposals like BitVM and trustless bridges, allowing Bitcoin to combine its security and dormant capital with Ethereum's innovation-driven ecosystem.
Bringing Scalability to Bitcoin
Developers have been exploring ways to add programmability and DeFi capabilities to Bitcoin. Although Wrapped Bitcoin (WBTC) allows interaction with Ethereum’s DeFi, it has centralization issues. BitVM offers a breakthrough by enabling true Bitcoin rollups and trust-minimized Bitcoin bridges, allowing complex financial operations and decentralized applications without protocol changes.
The Opportunity for Retail and Institutional Investors
Bitcoin’s role in DeFi has slowly gained traction, with platforms like Babylon facilitating billions in staking. Bitcoin's robust market cap and security appeal to investors previously wary of DeFi, providing a foundation for mainstream adoption as seen in 2025 developments.
Bitcoin DeFi is becoming a movement, and by 2025 it may compete with Ethereum, becoming a key player with innovations and a growing TVL.
