In recent months, the BitcoinDeFi market has shown significant development, opening new horizons for Bitcoin usage.
Growth of BitcoinDeFi and Its Market Impact
As of October 2024, the total value locked in BitcoinDeFi (BTCFi) reached $2.3 billion, a 40-fold increase since January 2023, indicating a surge in retail investments. MerlinSwap's historic IDO raised 6,599 BTC from over 52,000 investors.
Technological Achievements and Innovations
Stacks recently upgraded its network, significantly boosting transaction speeds and improving security. Developers at Rootstock employ a dual mining setup leveraging 50% of Bitcoin’s hash power while maintaining EVM compatibility, making Bitcoin more efficient and versatile.
Benefits and Risks of the BTCFi Sector
BTCFi offers significant security benefits by operating within Bitcoin's own network, reducing the risks associated with cross-chain bridges and external custodians. However, it's important to remember that the sector is in its infancy and could face challenges, similar to issues faced by BlockFi and Celsius.
BitcoinDeFi continues to gather momentum, creating prospects for increased future institutional and retail participation.
