Binance Research, the investigative branch of the leading cryptocurrency exchange, has released an insightful new study about Bitcoin (BTC).
According to the report by Binance analyst Moulik Nagesh, Bitcoin is stepping beyond its traditional role as a store of value and is becoming an integral part of the decentralized finance (DeFi) ecosystem.
The analyst highlighted how Bitcoin’s increasing involvement in DeFi applications is unlocking new revenue potential for holders, particularly through options like using Bitcoin as collateral or for lending to generate yield.
Nagesh pointed out that, despite Bitcoin’s extensive use as a store of value, only a small fraction—around 0.8%—of its total supply is currently utilized in DeFi, suggesting a vast, untapped opportunity within the sector.
The report emphasized that this growing sector, dubbed Bitcoin DeFi (BTCFi), aims to enhance Bitcoin’s capital efficiency by integrating it into decentralized financial tools such as staking, decentralized exchanges (DEXs), and stablecoins.
As DeFi continues to develop, even modest adoption rates could lead to significant capital inflows, opening up new pathways for the financialization of Bitcoin. The potential for growth in this space, according to the findings, could be substantial, with the likelihood of billions of dollars entering the market if Bitcoin’s inactive supply begins to be leveraged more widely in DeFi applications.
21Shares has decided to shut down its Bitcoin and Ethereum futures ETFs, with liquidation expected to take place by March 28.
On Friday, Bitcoin’s price surged toward the $84,000 level, briefly surpassing $85,000, lifting the spirits of the crypto community.
The possibility that Bitcoin may repeat its 2024 market behavior, where it consolidated after hitting a record price, is still on the table, according to Markus Thielen, 10x Research’s chief crypto analyst.
Markus Thielen, head of crypto research at 10x Research, has raised the possibility that Bitcoin might revisit a similar pattern to its 2024 performance, where it consolidated after reaching an all-time high earlier in the year.